HF 2380 (LSB 5398HV (2) 84)

HOUSE FILE 2380

BY  COMMITTEE ON EDUCATION

(SUCCESSOR TO HSB 517)

A BILL FOR

An Act relating to programs and activities under the purview of the department of education, the state board of education, the board of educational examiners, school districts, and accredited nonpublic schools; and providing for the retention of certain fees and for the use of certain funds.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I

COMPETENCY-BASED INSTRUCTION
    Section 1.  COMPETENCY-BASED INSTRUCTION TASK FORCE.
   1.  The superintendents of the school districts that have been approved by the department of education to implement competency-based instruction shall appoint a task force to conduct a study regarding competency-based instruction standards and options and the integration of competency-based instruction with the Iowa core curriculum, and to develop related assessment models and professional development focused on competency-based instruction.
   2.  At a minimum, the task force shall do all of the following:
   a.  Redefine the Carnegie unit into competencies.
   b.  Construct personal learning plans and templates.
   c.  Develop student-centered accountability and assessment models.
   d.  Empower learning through technology.
   e.  Develop supports and professional development for educators to transition to a competency-based system.
   3.
  a.  The task force shall be comprised of at least sixteen members, nine of whom shall represent education stakeholders and practitioners knowledgeable about the Iowa core curriculum; one of whom shall be the deputy director and administrator of the division of learning and results of the department of education or the deputy director’s designee; one of whom shall represent the area education agencies; one of whom shall represent the Iowa state education association; and four of whom shall represent the general assembly.
   b.  The four members of the general assembly shall serve as ex officio, nonvoting members. One representative shall be appointed by the speaker of the house of representatives, one representative shall be appointed by the minority leader of the house of representatives, one senator shall be appointed by the majority leader of the senate after consultation with the president of the senate, and one senator shall be appointed by the minority leader of the senate.
   4.  The person representing the area education agency shall convene the initial meeting. The task force shall elect one of its members as chairperson. After the initial meeting, the task force shall meet at the time and place specified by call of the chairperson. The department of education shall provide staffing services for the task force.
   5.  The task force shall submit its plan, findings, models, and recommendations in a final report to the state board of education, the governor, and the general assembly by January 15, 2013.
    Sec. 2.  COMPETENCY-BASED EXEMPTION REQUEST —— EXTENSION FOR 2012-2013 SCHOOL YEAR.  The board of directors of a school district or the authorities in charge of a nonpublic school shall have until May 1, 2012, to submit a request for an exemption from the educational program to the director of the department of education in accordance with section 256.11, subsection 8, to create, beginning with the 2012-2013 school year, competency-based pathways for students that use standards and evidence as the baseline for competency determinations and bases advancement and credit on what students know or are able to do rather than on time spent in the classroom.
    Sec. 3.  EFFECTIVE UPON ENACTMENT.  This division of this Act, being deemed of immediate importance, takes effect upon enactment.

DIVISION II

CORE CURRICULUM FRAMEWORK AND CORE CONTENT STANDARDS
    Sec. 4.  Section 256.7, subsection 26, paragraph a, Code Supplement 2011, is amended to read as follows:
   a.  Adopt rules that establish a core curriculum and high school graduation requirements for all students in school districts and accredited nonpublic schools that include at a minimum satisfactory completion of four years of English and language arts, three years of mathematics, three years of science, and three years of social studies.
   (1)  The rules establishing high school graduation requirements shall authorize a school district or accredited nonpublic school to consider that any student who satisfactorily completes a high school-level unit of English or language arts, mathematics, science, or social studies has satisfactorily completed a unit of the high school graduation requirements for that area as specified in this lettered paragraph
 
“a”, and shall authorize the school district or accredited nonpublic school to issue high school credit for the unit to the student.
   (2)  The rules establishing a core curriculum shall address the core content standards in subsection 28 and the skills and knowledge students need to be successful in the twenty-first century. The core curriculum shall include, including but not limited to English and language arts, mathematics, science, social studies and twenty-first century learning skills which include but are not limited to, music and other fine arts, applied arts, foreign languages, physical education, entrepreneurship education, civic literacy, health literacy, technology literacy, financial literacy, and employability skills; and shall address the curricular needs of students in kindergarten through grade twelve in those areas. The department shall further define the twenty-first century learning skills components by rule.
    Sec. 5.  Section 256.9, Code Supplement 2011, is amended by adding the following new subsections:
   NEW SUBSECTION.  62.  Appoint members to the core curriculum framework and core content standards advisory council established in section 256.41. The director may establish objectives for the council in accordance with section 256.41. 
   NEW SUBSECTION.  63.
  a.  Create and disseminate to school districts, charter schools, and accredited nonpublic schools a model curriculum that is directly tied to the goals, outcomes, and assessment strategies identified in the core content standards. The model curriculum shall identify a developmentally appropriate scope and sequence of instruction applicable to the core content standards, instructional material resources, and teaching and assessment strategies. The model curriculum shall provide guidance to school districts and schools and expand on the core content standards. The model curriculum shall be modified as necessary to incorporate the core curriculum framework developed pursuant to paragraph “b”.
   b.  Develop by July 1, 2015, a core curriculum framework aligned to the core curriculum standards established pursuant to section 256.7, subsection 26.
    Sec. 6.  NEW SECTION.  256.41  Core curriculum framework and core content standards advisory council.
   1.  A core curriculum framework and core content standards advisory council is established under the department.
   2.  The advisory council shall consist of no less than seven members appointed by the director in accordance with sections 69.16, 69.16A, and 69.16C. Members shall serve at the pleasure of the director.
   3.  The department is the primary agency responsible for providing administrative personnel and services for the advisory council.
   4.  Members shall elect a chair annually and other officers as the members determine. Members shall establish rules of procedure for the advisory council.
   5.  The advisory council shall meet at least quarterly and at the call of the chair.
   6.  Members of the advisory council shall serve without compensation but may be reimbursed for actual expenses incurred in the performance of their duties.
   7.  The advisory council shall review the core curriculum, the core content standards, and the model curriculum adopted pursuant to section 256.7, subsections 26, 28, and 63 upon request of the director and make recommendations to the director regarding a core curriculum framework and any necessary changes to the core curriculum content standards and model curriculum. In making recommendations, the advisory council shall seek to further the goals of the core content standards and any objectives established by the director.

DIVISION III

TEACHER AND ADMINISTRATOR PERFORMANCE
    Sec. 7.  Section 256.7, Code Supplement 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  31.
  a.  By January 1, 2013, adopt rules establishing Iowa teaching and administration standards that are aligned with best practices and nationally accepted standards.
   b.  By July 1, 2013, adopt by rule statewide teacher evaluation system and statewide administrator evaluation system pilot programs which shall be implemented during the 2013-2014 school year. This paragraph is repealed July 1, 2015.
    Sec. 8.  Section 256.9, Code Supplement 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  64.
  a.  Develop a statewide teacher evaluation system and a statewide administrator evaluation system that school districts, charter schools, and accredited nonpublic schools shall use to standardize the instruments and processes used to evaluate teachers and administrators throughout the state. However, a charter school or accredited nonpublic school may develop and submit to the department for approval an alternative teacher evaluation system that meets local and state educational goals. Upon receiving approval from the department, the charter school or accredited nonpublic school may adopt and implement the approved alternative teacher evaluation system in lieu of the statewide teacher evaluation system.
   b.  The components of the statewide teacher evaluation system shall include but not be limited to the following:
   (1)  Direct observation of classroom teaching behaviors.

   (2)  Strong consideration of student outcome measures, when available for tested subjects and grades, to validate direct observation of classroom teaching behaviors.
   (3)  Integration of the Iowa teaching standards.
   (4)  System applicability to teachers in all content areas taught in a school.
    Sec. 9.  Section 284.3, Code 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  4.  This section is repealed July 1, 2013.
    Sec. 10.  Section 284.4, subsection 1, paragraph e, Code 2011, is amended to read as follows:
   e.
  (1)  Adopt a teacher evaluation plan that, at minimum, requires a
 
an annual performance review of teachers in the district at least once every three years based upon the Iowa teaching standards and individual professional development plans
 
in accordance with section 284.8, and requires administrators to complete evaluator training in accordance with section 284.10.
   (2)  Adopt, by July 1, 2013, the statewide teacher evaluation system developed pursuant to section 256.9, subsection 64. However, the school district may develop and submit to the department for approval an alternative teacher evaluation system that meets local and state educational goals. In lieu of the statewide teacher evaluation system, the school district may adopt and implement the alternative teacher evaluation system upon receiving approval from the department.
    Sec. 11.  Section 284.8, subsections 1 and 2, Code 2011, are amended to read as follows:
   1.  A school district shall
 
provide for an annual review a
 
of each teacher’s performance at least once every three years for purposes of assisting teachers in making continuous improvement, documenting continued competence in the Iowa teaching standards, identifying teachers in need of improvement, or to determine whether the teacher’s practice meets school district expectations for career advancement in accordance with section 284.7. The review shall
 
be conducted by at least one evaluator certified in accordance with section 284.10, and shall include, at minimum, classroom observation of the teacher, the teacher’s progress, and implementation of the teacher’s individual professional development plan, subject to the level of resources provided to implement the plan; and shall include supporting documentation from parents, students, and other teachers.
   2.  If, as a result of a review conducted pursuant to subsection 1, a supervisor or an evaluator determines, at any time, as a result of a teacher’s performance that the
 
a teacher is not meeting district expectations under the Iowa teaching standards specified in section 284.3, subsection 1, paragraphs “a” through “h”
 
established by the state board by rule, the criteria for the Iowa teaching standards developed by the department in accordance with section 256.9, subsection 46, and any other standards or criteria established in the collective bargaining agreement, the evaluator shall, at the direction of the teacher’s supervisor, recommend to the district that the teacher participate in an intensive assistance program. The intensive assistance program and its implementation are subject to negotiation and grievance procedures established pursuant to chapter 20. All school districts shall be prepared to offer an intensive assistance program.
    Sec. 12.  Section 284A.7, Code 2011, is amended to read as follows:
   284A.7  Evaluation requirements for administrators.
   1.  A school district shall conduct an
 
annual evaluation of an administrator who holds a professional administrator license issued under chapter 272 at least once every three years
 
chapter 256 for purposes of assisting the administrator in making continuous improvement, documenting continued competence in the Iowa standards for school administrators adopted pursuant to section 256.7, subsection 27, or to determine whether the administrator’s practice meets school district expectations. The review shall include, at a minimum, an assessment of the administrator’s competence in meeting the Iowa standards for school administrators and the goals of the administrator’s individual professional development plan, including supporting documentation or artifacts aligned to the Iowa standards for school administrators and the individual administrator’s professional development plan.
   2.  Adopt the statewide administrator evaluation system developed pursuant to section 256.9, subsection 64. However, the school district may develop and submit to the department for approval an alternative administrator evaluation system that meets local and state educational goals. In lieu of the statewide administrator evaluation system, the school district may adopt and implement the alternative administrator evaluation system upon receiving approval from the department.
    Sec. 13.  STATEWIDE EDUCATOR EVALUATION SYSTEM TASK FORCE.  The director of the department of education shall appoint, and provide staffing services for, a task force to conduct a study regarding a statewide teacher evaluation system and a statewide administrator evaluation system. The study of a statewide teacher evaluation system shall include a review of student outcome measures described in section 256.9, subsection 64, paragraph “b”, subparagraph (2). To the extent possible, appointments shall be made to provide geographical area representation and to comply with sections 69.16, 69.16A, and 69.16C. The task force, at a minimum, shall include in its recommendations and proposal a tiered evaluation system that differentiates ineffective, minimally effective, effective, and highly effective performance by teachers and administrators. The task force shall submit its findings, recommendations, and a proposal for each system to the state board of education and the general assembly by October 15, 2012. By November 26, 2012, the department of education shall submit a departmental bill drafting request to the legislative services agency in bill draft format making specific and detailed proposed amendments to the Code of Iowa necessary to advance the proposed task force recommendations as approved by the state board of education.
    Sec. 14.  TEACHER PERFORMANCE, COMPENSATION, AND CAREER DEVELOPMENT TASK FORCE. 
   1.  The director of the department of education shall appoint, and provide staffing services for, a teacher performance, compensation, and career development task force to develop recommendations for a new teacher compensation system to replace the current teacher compensation system which addresses, at a minimum, the following:
   a.  The duties and responsibilities of apprentice, career, mentor, and master teachers.
   b.  Utilizing retired teachers as mentors.
   c.  Strategic and meaningful uses of finite resources and the realignment of resources currently available.
   d.  Mechanisms to substantially increase the average salary of teachers who assume leadership roles within the profession.
   e.  Standardizing implementation of task force recommendations in all of Iowa’s school districts and public charter schools.
   2.  The director of the department of education shall appoint and provide staffing services for a task force whose members shall represent teachers, parents, school administrators, and business and community leaders. Insofar as practicable, appointments shall be made to provide geographical area representation and to comply with sections 69.16, 69.16A, and 69.16C.
   3.  The state board of education shall consider the findings and recommendations of the task force when adopting rules establishing Iowa teaching standards pursuant to this Act.
   4.  The task force shall submit its findings and recommendations in a report to the state board of education, the governor, and the general assembly by October 15, 2012.
    Sec. 15.  REPEAL.  Section 284.14A, Code 2011, is repealed.
    Sec. 16.  EFFECTIVE UPON ENACTMENT.  The sections of this division of this Act providing for the appointment of the statewide educator evaluation system task force and the appointment of the teacher performance, compensation, and career development task force, being deemed of immediate importance, take effect upon enactment.
    Sec. 17.  FUTURE CONTINGENT REPEAL AND USE OF EVALUATION SYSTEMS.
   1.  Section 256.7, subsection 31, and section 256.9, subsection 64, as enacted in this division of this Act, are repealed if the general assembly fails to enact legislation providing for the establishment of a statewide teacher evaluation system and a statewide administrator evaluation system during the 2013 Regular Session of the Eighty-fifth General Assembly, effective July 1, 2013.
   2.  Notwithstanding the sections of this division of this Act amending sections 284.3, 284.8, and 284A.7, if the general assembly fails to enact legislation providing for the establishment of a statewide teacher evaluation system and a statewide administrator evaluation system during the 2013 Regular Session of the Eighty-fifth General Assembly, effective July 1, 2013, all school districts shall continue to use the teacher and administrator evaluation systems in place on June 30, 2013.

DIVISION IV

INNOVATION ACCELERATION PROGRAM —— FUND
    Sec. 18.  NEW SECTION.  256.65  Innovation acceleration program —— fund.
   1.  An innovation acceleration program is established in the department to be administered by the department to provide competitive grants to applicants with a record of improving student achievement and educational attainment in order to expand the implementation of, and investment in, innovative practices that are demonstrated to have an impact on improving student achievement or student growth, closing achievement gaps, decreasing dropout rates, increasing parental involvement, increasing attendance rates, increasing high school graduation rates, or increasing college and career program enrollment and completion rates. The state board shall adopt rules relating to applicant eligibility, application procedures, and awarding of grants.
   2.  The program shall be designed to enable grantees to accomplish all of the following:
   a.  Expand and develop innovative practices that can serve as models of best practices.
   b.  Work in partnership with the private sector, community-based organizations, and the philanthropic community.
   c.  Identify and document best practices that can be shared and expanded based on demonstrated success.
   3.  An innovation acceleration fund is created in the state treasury under the control of the department. The fund shall be administered by the director and shall consist of all moneys deposited in the fund, including any moneys appropriated by the general assembly and any other moneys available to and obtained or accepted by the department from local, state, federal, or private sources for purposes of the innovation acceleration program. Notwithstanding section 8.33, moneys in the fund at the end of a fiscal year shall not revert to the general fund of the state. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys in the fund shall be credited to the fund.

DIVISION V

ONLINE LEARNING
    Sec. 19.  Section 256.7, subsection 8, Code Supplement 2011, is amended to read as follows:
   8.  Rules adopted under this section shall provide that telecommunications, which for purposes of this chapter shall include coursework delivered online, as appropriate, shall not be used by school districts as the exclusive means to provide any course which is required by the minimum educational standards for accreditation.
    Sec. 20.  Section 257.6, subsection 1, paragraph a, subparagraph (5), Code 2011, is amended to read as follows:
   (5)
  (a)  Resident pupils receiving competent private instruction from a licensed practitioner provided through a public school district pursuant to chapter 299A, and resident pupils receiving coursework delivered online, shall be counted as three-tenths of one pupil. Revenues received by a school district attributed to a school district’s weighted enrollment pursuant to this subparagraph shall be expended for the purpose for which the weighting was assigned under this subparagraph.
   (b)  If the school district determines that the expenditures associated with providing competent private instruction pursuant to chapter 299A are in excess of the revenue attributed to the school district’s weighted enrollment for such instruction in accordance with this subparagraph, the school district may submit a request to the school budget review committee for modified allowable growth in accordance with section 257.31, subsection 5, paragraph “n”. A home school assistance program shall not provide moneys received pursuant to this subparagraph, nor resources paid for with moneys received pursuant to this subparagraph, to parents or students utilizing the program. Moneys received by a school district pursuant to this subparagraph shall be used as provided in section 299A.12.

DIVISION VI

EDUCATIONAL STANDARDS EXEMPTIONS
    Sec. 21.  Section 256.11, subsection 8, Code 2011, is amended to read as follows:
   8.
  a.  Upon request of the board of directors of a public school district or the authorities in charge of a nonpublic school, the director may, for a number of years to be specified by the director, grant the district board or the authorities in charge of the nonpublic school exemption from one or more of the requirements of the educational program specified in subsection 5
 
this section. The exemption may be renewed. Exemptions shall be granted only if the director deems that the request made is an essential part of a planned innovative curriculum project which the director determines will adequately meet the educational needs and interests of the pupils and be broadly consistent with the intent of the educational program as defined in subsection 5
 
this section. The request for exemption shall include all of the following:
   a.

(1)  Rationale of the project to include supportive research evidence.
   b.

(2)  Objectives of the project.
   c.

(3)  Provisions for administration and conduct of the project, including the use of personnel, facilities, time, techniques, and activities.
   d.

(4)  Plans for evaluation of the project by testing and observational measures of pupil progress in reaching the objectives.
   e.

(5)  Plans for revisions of the project based on evaluation measures.
   f.

(6)  Plans for periodic reports to the department.
   g.

(7)  The estimated cost of the project.
   b.  Upon request of the board of directors of a public school district, the director may, for a number of years to be specified by the director, grant the district board exemption from one or more of the requirements of the educational program specified in this section if the school district complies with the requirements set forth in section 256F.4, subsection 2, paragraphs “a” through “m”, the request for exemption includes the components specified in paragraph “a”, subparagraphs (1) through (7), and the director deems that the request made is an essential part of a planned innovative curriculum project which the director determines will adequately meet the educational needs and interests of the pupils and be broadly consistent with the intent of the educational program as defined in this section.

   c.  The director shall submit a report by February 1, annually, to the state board, the governor, and the general assembly that lists all of the exemptions granted pursuant to this subsection and the reasons for which each exemption was granted by the director.

DIVISION VII

EDUCATION JOB OPENINGS POSTING
    Sec. 22.  Section 256.9, Code Supplement 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  70.  Maintain, on the department’s internet site, education job openings which shall be submitted by school districts, area education agencies, charter schools, and accredited nonpublic schools for posting.

DIVISION VIII

CLASS SHARING AGREEMENTS
    Sec. 23.  Section 257.11, subsection 3, Code 2011, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  c.  A school district that collaborates with a community college to provide a college-level class that uses an activities-based, project-based, and problem-based learning approach and that is offered through a partnership with a nationally recognized provider of rigorous and innovative science, technology, engineering, and mathematics curriculum for schools, which provider is exempt from taxation under section 501(c)(3) of the Internal Revenue Code, is eligible to receive additional weighting under a supplementary weighting plan adopted pursuant to this subsection.
    Sec. 24.  Section 261E.8, Code Supplement 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  6A.  A student enrolled in a career and technical course made available pursuant to subsection 1 is exempt from the proficiency requirements of section 261E.3, subsection 1, paragraph “e”. However, a community college may require a student who applies for enrollment under a district-to-community college sharing or concurrent enrollment program to complete an initial assessment administered by the community college receiving the application to determine the applicant’s readiness to enroll in career and technical coursework, and the community college may deny the enrollment.

DIVISION IX

SCHOOL INSTRUCTIONAL TIME TASK FORCE
    Sec. 25.  SCHOOL INSTRUCTIONAL TIME TASK FORCE. 
   1.  The director of the department of education shall appoint a school instructional time task force comprised of at least seven members to conduct a study regarding the minimum requirements of the school day and the school year. The study shall include but not be limited to an examination of the following:
   a.  Whether the minimum length of an instructional day should be extended and, if so, whether the instructional day should be extended for all students or for specific groups of students.
   b.  Whether the minimum number of instructional days or hours in a school year should be increased and, if so, whether the minimum number of days or hours in a school year should be increased for all students or for specific groups of students.
   c.  Whether the minimum number of instructional days or hours should be rearranged to result in a shorter summer break, with other days or weeks off throughout the school year.
   d.  Whether the minimum school year should be defined by a number of days or by a number of instructional hours.
   e.  Whether there should be a uniform, statewide start date for the school year that can only be waived for the purpose of implementing an innovative educational program.
   f.  Whether resources necessary to extend the minimum length of an instructional day or the minimum length of a school year are justified when compared to competing education priorities.
   2.  The appointment of members to the task force shall be made in a manner which provides geographical area representation and complies with sections 69.16, 69.16A, and 69.16C. 

   3.  The task force shall submit its findings and recommendations in a report to the state board of education, the governor, and the general assembly by October 15, 2012. 

DIVISION X

ASSESSMENTS
    Sec. 26.  Section 256.7, subsection 21, paragraph c, Code Supplement 2011, is amended to read as follows:
   c.  A requirement that all school districts and accredited nonpublic schools annually report to the department and the local community the district-wide progress made in attaining student achievement goals on the academic and other core indicators and the district-wide progress made in attaining locally established student learning goals. The
 
Use by school districts and accredited nonpublic schools shall demonstrate the use of multiple
 
statewide assessment measures
 
identified and approved by the state board in determining student achievement levels. The school districts and accredited nonpublic schools shall also report the number of students who graduate; the number of students who drop out of school; the number of students who are tested and the percentage of students who are so tested annually; and the percentage of students who graduated during the prior school year and who completed a core curriculum. The board shall develop and adopt uniform definitions consistent with the federal No Child Left Behind Act of 2001, Pub. L. No. 107-110 and any federal regulations adopted pursuant to the federal Act. The school districts and accredited nonpublic schools may report on other locally determined factors influencing student achievement. The school districts and accredited nonpublic schools shall also report to the local community their results by individual attendance center.
    Sec. 27.  Section 256.7, subsection 21, Code Supplement 2011, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  d.  By July 1, 2014, establishment by the department of an accountability system designed to hold school districts and accredited nonpublic schools accountable for student achievement. The accountability system shall, at a minimum, define and measure student achievement, student growth, student achievement gaps, college and career readiness, student well-being, parent satisfaction, school staff working conditions, school fiscal responsibility, and graduation and attendance rates. The director may at the director’s discretion, or shall as directed by the state board, convene a working group to develop recommendations for any of the following:
   (1)  The accountability system established pursuant to this paragraph.
   (2)  Redesigning the accreditation procedures implemented under section 256.11.
   (3)  A compliance monitoring process aligned with the accountability system.
   (4)  Targeting support for school districts identified as needing assistance under the accountability system.
   (5)  Identifying, studying, and commending high-performing districts.
   (6)  Developing strategies to take over the operation of school districts determined pursuant to section 256.11, or under the accountability system, as persistently failing to meet educational system or student achievement standards.
    Sec. 28.  Section 256.7, subsection 26, paragraph a, subparagraph (1), Code Supplement 2011, is amended to read as follows:
   (1)  The rules establishing high school graduation requirements shall authorize a school district or accredited nonpublic school to consider that any student who satisfactorily completes a high school-level unit of English or language arts, mathematics, science, or social studies has satisfactorily completed a unit of the high school graduation requirements for that area as specified in this lettered paragraph, and shall authorize the school district or accredited nonpublic school to issue high school credit for the unit to the student. 
 
The rules shall also require administration of the college entrance and career readiness examinations in accordance with section 280.18.
    Sec. 29.  Section 256.7, subsection 26, Code Supplement 2011, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  d.  Adopt by rule by July 1, 2014, a policy for the incorporation by school districts of end-of-course assessments into the district’s high school graduation requirements.
    Sec. 30.  Section 256.7, subsection 28, Code Supplement 2011, is amended to read as follows:
   28.  Adopt a set of core content standards applicable to all students in kindergarten through grade twelve in every school district and accredited nonpublic school. For purposes of this subsection, “core content standards” includes reading, mathematics, and science. The core content standards shall be identical to the core content standards included
 
include those established in Iowa’s approved 2006 standards and assessment system under Tit. I of the federal Elementary and Secondary Education Act of 1965, 20 U.S.C. § 6301 et seq., as amended by the federal No Child Left Behind Act of 2001, Pub. L. No. 107-110. School districts and accredited nonpublic schools shall include, at a minimum, the core content standards adopted pursuant to this subsection in any set of locally developed content standards. School districts and accredited nonpublic schools are strongly encouraged to set higher expectations in local standards. As changes in federal law or regulation occur, the state board is authorized to amend the core content standards as appropriate.
    Sec. 31.  Section 256.9, Code Supplement 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  68.  Develop, by July 1, 2014, high school end-of-course assessments for subject areas included under the core content standards.
    Sec. 32.  NEW SECTION.  256.24  Value-added assessment system.
   1.  For purposes of this section, unless the context otherwise requires, “value-added assessment” means a method to measure gains in student achievement by conducting a statistical analysis of achievement data that reveals academic growth over time for students and groups of students, such as those in a grade level or in a school.
   2.  A value-added assessment system shall be established and implemented by the department not later than January 31, 2013, to provide for multivariate longitudinal analysis of annual student test scores to determine the influence of a school district’s educational program on student academic growth and to guide school district improvement efforts. The department shall select a value-added assessment system provider through a request for proposals process. The system provider selected by the department shall offer a value-added assessment system to calculate annually the academic growth of students, as determined by the director, and tested in accordance with this section. The system provider shall, at a minimum, meet all of the following criteria:
   a.  Use a mixed-model statistical analysis that has the ability to use all achievement test data for each student, including the data for students with missing test scores, that does not adjust downward expectations for student progress based on race, poverty, or gender, and that will provide the best linear unbiased predictions of school or other educational entity effects to minimize the impact of random errors.
   b.  Have the ability to work with test data from a variety of sources, including data that are not vertically scaled, and to provide support for school districts utilizing the system.
   c.  Have the capacity to receive and report results electronically and provide support for districts utilizing the system.
   3.  The system provider shall create a mechanism to collect and evaluate data in a manner that reliably aligns the performance of the teacher with the achievement levels of and progress of the teacher’s students. School districts shall report teacher-to-student alignment data to the system provider as directed by the department.
   4.  The system provider shall provide analysis to school districts and to the department of education. The analysis shall include but not be limited to attendance-center-level test results for an assessment aligned with the core content standards in the areas of reading and mathematics and other core academic areas when possible. The analysis shall also include but not be limited to the number of students tested, the number of test results used to compute the averages, the average standard score, and the corresponding grade equivalent-score, as well as measures of student progress. The system provider shall create a chart for each school district.
   5.  A school district shall have complete access to and full utilization of its own value-added assessment reports and charts generated by the system provider at the student level for the purpose of measuring student achievement at different educational entity levels.
   6.  Where student outcomes measures are available, for tested subjects and grades, student outcomes measures shall be considered by the district to validate a teacher’s observational evaluation. Student outcomes measures which are a component of a teacher’s evaluation are not public records for the purposes of chapter 22.
   7.  Information about student academic growth shall be used by the school district, including school board members, administration, and staff, for defining student and district learning goals and professional development related to student learning goals across the school district. A school district shall submit its academic growth measures in the annual report submitted pursuant to section 256.7, subsection 21, and may reference in the report state level norms for purposes of demonstrating school district performance.
   8.  The department shall use student academic growth data to determine school improvement and technical assistance needs of school districts, and to identify school districts achieving exceptional gains. Beginning January 15, 2013, and by January 15 of each succeeding year, the department shall submit an annual progress report regarding the use of student academic growth information in the school improvement processes to the general assembly and shall publish the progress report on its internet site.
   9.  A school district shall use the value-added assessment system established by the department pursuant to subsection 1 not later than the school year beginning July 1, 2013.
    Sec. 33.  Section 279.60, Code 2011, is amended to read as follows:
   279.60  Kindergarten assessment
 
Assessments —— access to data —— reports.
   1.
  a.  Each school district shall administer a kindergarten readiness assessment prescribed by the department of education to every resident prekindergarten or four-year-old child whose parent or guardian enrolls the child in the district.
   b.  Each school district shall administer the dynamic indicators of basic early literacy skills kindergarten benchmark assessment or other kindergarten benchmark assessment adopted by the department of education in consultation with the early childhood Iowa state board to every kindergarten student enrolled in the district not later than the date specified in section 257.6, subsection 1. The school district shall also collect information from each parent, guardian, or legal custodian of a kindergarten student enrolled in the district, including but not limited to whether the student attended preschool, factors identified by the early childhood Iowa office pursuant to section 256I.5, and other demographic factors. Each school district shall report the results of the assessment and the preschool information collected to the department of education in the manner prescribed by the department not later than January 1 of that school year. The early childhood Iowa office in the department of management shall have access to the raw data. The department shall review the information submitted pursuant to this section and shall submit its findings and recommendations annually in a report to the governor, the general assembly, the early childhood Iowa state board, and the early childhood Iowa area boards.
   2.
  a.  Each school district shall administer the Iowa assessments, created by the state university of Iowa, to all students enrolled in grade ten in the school years beginning July 1, 2012, and July 1, 2013.
   b.  This subsection is repealed July 1, 2014.
   3.  By July 1, 2014, each school district shall administer end-of-course assessments developed pursuant to section 256.9, subsection 68, as an integral component of each course of study under the core content standards.
    Sec. 34.  NEW SECTION.  280.18  Assessment requirements.
   1.  The board of directors of a school district and the authorities in charge of a nonpublic school shall offer to each student enrolled in grade eleven a choice of taking either a college entrance examination produced to assess English, reading, mathematics, and science; or an assessment to assess reading for information, locating information, and applied mathematics.
   2.
  a.  The cost of the examinations and assessments administered pursuant to subsection 1 shall be paid by the department.
   b.  The costs of a college entrance examination taken by a student in addition to those specified in subsection 1 shall be the responsibility of the student.
   3.  If funds are available to the department for such purpose, the department shall make a preparation program for the college entrance examination available to all students in grade eleven. The department may contract for the necessary assessment services.
   4.
  a.  The school district or school shall counsel a student whose scores on the college entrance examination administered in grade eleven indicate a high degree of readiness for college to enroll in accelerated courses, with an emphasis on advanced placement and other college-level classes.
   b.  The school district or school shall provide intervention strategies for accelerated learning in the following circumstances:
   (1)  To a student whose scores on the career readiness assessments indicate that additional assistance is required in reading for information, locating information, or applied mathematics.
   (2)  To a student whose scores on the college entrance examination administered in grade eleven indicate that additional assistance is required in English, reading, mathematics, and science.
   5.  Accommodations provided by the college entrance examination provider to a student with a disability taking the college entrance examination under subsection 1 shall be provided in the following manner:
   a.  In the manner allowed by the college entrance examination provider, when results in test scores are reportable to a postsecondary institution for admissions and placement purposes, except as provided in paragraph “b”.
   b.  In a manner allowed by an individualized education program developed for the student if the student is a student requiring special education under chapter 256B and the student’s disability precludes valid assessment of academic ability using the accommodations provided under paragraph “a” when the student’s scores are not reportable to a postsecondary institution for admissions and placement purposes.
   6.  A student’s scores on the examinations administered under subsection 1 shall be recorded by the school district or school in the student’s official education record.

DIVISION XI

NATIONAL BOARD FOR PROFESSIONAL TEACHING STANDARDS AWARDS
    Sec. 35.  Section 256.44, subsection 1, paragraph a, Code 2011, is amended to read as follows:
   a.  If a teacher registers for national board for professional teaching standards certification by
 
after December 31, 2007, a one-time initial reimbursement award in the amount of up to one-half of the registration fee paid by the teacher for registration for certification by the national board for professional teaching standards. The teacher shall apply to the department within one year of registration
 
in a manner and according to procedures required by the department, submitting to the department any documentation the department requires. A teacher who receives an initial reimbursement award shall receive a one-time final registration award in the amount of the remaining national board registration fee paid by the teacher if the teacher notifies the department of the teacher’s certification achievement and submits any documentation requested by the department.
    Sec. 36.  Section 256.44, subsection 1, paragraph b, subparagraph (1), subparagraph division (b), Code 2011, is amended to read as follows:
   (b)  If the teacher registers for national board for professional teaching standards certification between January 1, 1999, and December 31, 2007, and achieves certification within the timelines and policies established by the national board for professional teaching standards, an annual award in the amount of two thousand five hundred dollars upon achieving certification by the national board of professional teaching standards.

DIVISION XII

EDUCATOR EMPLOYMENT AND PROFESSIONAL DEVELOPMENT MATTERS
    Sec. 37.  Section 256.7, Code Supplement 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  32.  Adopt rules providing for the establishment of a statewide plan for professional development for practitioners employed in Iowa’s school districts. The statewide plan shall be designed to make every reasonable effort to utilize best practices, current technologies, and social media, and shall be implemented by the area education agencies pursuant to section 273.2.
    Sec. 38.  Section 256.9, Code Supplement 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  69.  Approve, amend and approve, or reject each professional development plan submitted pursuant to section 273.2, in accordance with the rules adopted pursuant to section 256.7, subsection 32, providing for the establishment of a statewide professional development plan for practitioners, the services of which a school district may request pursuant to section 273.2.
    Sec. 39.  Section 257.10, subsection 10, paragraph d, Code 2011, is amended to read as follows:
   d.  The use of the funds calculated under this subsection shall comply with the requirements of
 
section 256.7, subsection 32, and chapter 284.
    Sec. 40.  Section 257.10, subsection 10, Code 2011, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  e.  For the budget year beginning July 1, 2012, and succeeding budget years, the department of management shall reduce the distributions from the amount generated by the total professional development supplement district cost to each school district for the budget year by ten percent. However, for purposes of the calculation of the combined district cost pursuant to section 257.10, subsection 8, and the calculation of the additional property tax pursuant to section 257.4, the total professional development supplement district cost is the amount which results after the reduction made pursuant to this paragraph.
    Sec. 41.  Section 257.16, Code 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  5.  There is appropriated to the department of education for the fiscal year beginning July 1, 2012, and each fiscal year thereafter, an amount equal to the amount of the professional development supplement reduction, determined pursuant to section 257.10, subsection 10, paragraph “e”, and section 257.37A, subsection 2, paragraph “d”, for purposes of implementing a statewide professional development plan in accordance with section 256.7, subsection 32.
    Sec. 42.  Section 257.37A, subsection 2, paragraph d, Code 2011, is amended to read as follows:
   d.  The use of the funds calculated under this subsection shall comply with requirements of
 
section 256.7, subsection 32, and chapter 284.
    Sec. 43.  Section 257.37A, subsection 2, Code 2011, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  e.  For the budget year beginning July 1, 2012, and succeeding budget years, the department of management shall reduce the distributions from the amount generated by the total area education agency professional development supplement district cost to each area education agency for the budget year by ten percent. However, for purposes of the calculation of the combined district cost pursuant to section 257.10, subsection 8, and the calculation of the additional property tax pursuant to section 257.4, the total area educational agency professional development supplement district cost is the amount which results after the reduction made pursuant to this paragraph.
    Sec. 44.  Section 273.2, Code Supplement 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  10.  The area education agency boards shall each annually submit to the department of education a plan for a professional development program, to be implemented in the following fiscal year, which combines the professional development priorities of the state board of education, in accordance with section 256.7, subsection 32, with the professional development needs of the schools and school districts in the area. The area education agency board shall provide professional development services under the approved program to local school districts in the area upon request.
    Sec. 45.  Section 279.13, Code 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  6.  Notwithstanding the other provisions of this section and any contrary provision of the Code, if the board of directors of a school district or charter school institutes, by majority vote of the membership of the board, a reduction in force, a decision by the board not to renew a teacher contract shall be based upon the following:
   a.  The teacher’s effectiveness as demonstrated in evaluations conducted under the teacher evaluation plan adopted pursuant to section 284.4, and the teacher’s performance review conducted pursuant to section 284.8.
   b.  The teacher’s licensure and endorsements and the needs of the school district or school, and the needs of the students.
   c.  The teacher’s hiring date may be taken into consideration only if the bases existing under paragraphs “a” and “b” are substantially equal to the bases existing under paragraphs “a” and “b” for another teacher.
    Sec. 46.  Section 284.6, subsection 1, unnumbered paragraph 1, Code Supplement 2011, is amended to read as follows:
   The department shall coordinate a
 
implement the statewide network of
 
plan for professional development for Iowa teachers
 
practitioners established pursuant to section 256.7, subsection 32. A
 
In addition, a school district or professional development provider that offers a
 
career and professional development program
 
programs in accordance with section 256.9, subsection
 
subsections 46,
 
and 69 shall demonstrate that the program contains
 
programs contain the following:
    Sec. 47.  Section 284.6, Code Supplement 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  5A.  The director may waive the requirements relating to the development and review of an individual teacher professional development plan for a school district that utilizes a peer review teacher evaluation system in which consulting teachers, in conjunction with school administrators, make formal evaluations of the school district’s teachers, including but not limited to each teacher’s professional growth and employment status. Notwithstanding section 284.8, subsection 1, if the school district is granted a waiver pursuant to this subsection, the review conducted pursuant to section 284.8, subsection 1, shall include a teacher’s review conducted utilizing the peer review teacher evaluation system.

DIVISION XIII

CHARTER SCHOOL CHANGES
    Sec. 48.  Section 256F.1, subsections 1 and 2, Code 2011, are amended by striking the subsections.
    Sec. 49.  Section 256F.1, subsection 3, unnumbered paragraph 1, Code 2011, is amended to read as follows:
   The purpose of a charter school or an innovation zone school established pursuant to this chapter shall be to accomplish the following:
    Sec. 50.  Section 256F.1, subsection 4, Code 2011, is amended by striking the subsection and inserting in lieu thereof the following:
   4.  This section shall not be construed to provide a means to keep open a school that the board of directors of a school district closes. However, a school board may endorse or authorize the establishing of a charter school to replace the school the board closes. Applicants seeking a charter under this circumstance shall demonstrate to the state board that the charter sought is substantially different in purpose and program from the school the board closes and that the proposed charter satisfies the requirements of this section. The state board shall not approve an application submitted under section 256F.5 if the application does not comply with this subsection.
    Sec. 51.  Section 256F.2, subsections 1 and 6, Code 2011, are amended by striking the subsections and inserting in lieu thereof the following:
   1.  “Applicant” means an entity eligible to submit to the state board an application to charter a school in accordance with this chapter. “Applicant” includes any of the following:
   a.  The board of directors of a school district.
   b.  A consortium consisting of the boards of directors of two or more school districts.
   c.  An area education agency board.
   d.  A consortium consisting of the boards of directors of an area education agency and one or more school districts, at least one of which is located within the boundaries of the area education agency.
   e.  The board of directors of a community college.
   f.  A consortium consisting of the boards of directors of a community college and one or more school districts, at least one of which is located within the boundaries of the community college.
   g.  An institution of higher education governed by the state board of regents.
   h.  A consortium consisting of an institution of higher education governed by the state board of regents and the board of directors of one or more school districts.
   i.  A consortium consisting of one or more accredited private institutions as defined in section 261.9, all of which shall be exempt from taxation under section 501(c)(3) of the Internal Revenue Code, and the board of directors of one or more school districts.
   j.  A consortium consisting of the governing body of a city or county with a population over ninety-five thousand and the board of directors of one or more school districts located, at least in part, within the boundaries of the city or county.
   k.  A nonsectarian, nonreligious charitable organization that is exempt from taxation under section 501(c)(3) of the Internal Revenue Code.

   6.  “Operator” means an applicant approved by the state board to charter a school under this chapter.
    Sec. 52.  Section 256F.2, subsection 7, Code 2011, is amended by striking the subsection.
    Sec. 53.  Section 256F.3, Code 2011, is amended by striking the section and inserting in lieu thereof the following:
   256F.3  Duties of the department.
   The department shall do the following:
   1.  Develop and implement an orientation program for operators. An operator shall successfully complete the orientation program prior to chartering a school pursuant to this chapter. The program shall include but not be limited to accountability requirements, reporting requirements, and financial management. If the operator does not successfully complete the orientation program in the time specified by the department, the state board shall reevaluate the operator’s application and may deny the application. If the state board denies an application under this subsection, the decision of the state board is final agency action under chapter 17A.
   2.  Develop and implement or approve orientation programs for members of the boards of directors of charter schools, including but not limited to orientation on the charter school board’s role and responsibilities, employment policies and practices, and financial management.
   3.  Monitor and evaluate the fiscal, operational, and student performance of the charter school annually and provide a written annual performance evaluation to the charter school board and the state board.
   4.  Provide, every fifth year in which a charter school is in operation and before the state board considers renewing a charter school’s contract, a formal written review of the annual evaluations conducted pursuant to subsection 3.
    Sec. 54.  Section 256F.4, subsections 1, 5, and 7, Code 2011, are amended by striking the subsections.
    Sec. 55.  Section 256F.4, subsections 2, 6, and 8, Code 2011, are amended to read as follows:
   2.  Although a charter school or innovation zone school may elect to comply with one or more provisions of statute or administrative rule, a charter school or innovation zone school is exempt from all statutes and
 
administrative rules applicable to a school, a school board, or a school district, except that the charter school or innovation zone school
 
shall meet the requirements of this chapter and shall do all of the following:
   a.  Meet all applicable federal, state, and local health and safety requirements and laws prohibiting discrimination on the basis of race, creed, color, sex, sexual orientation, gender identity, national origin, religion, ancestry, or disability. A charter school or innovation zone school shall be subject to any court-ordered desegregation plan in effect for the school district at the time the charter school or innovation zone school application is approved.
   b.  Operate as a nonsectarian, nonreligious public school.
   c.  Be free of tuition and application fees to Iowa resident students between the ages of five and twenty-one years.
   d.  Be subject to and comply with chapters 216 and 216A relating to civil and human rights.
   e.  Provide
 
Make special education
 
programs and services
 
available to students requiring special education in accordance with chapter 256B.
   f.  Be subject to the same financial audits, audit procedures, and audit requirements as a school district. The audit shall be consistent with the requirements of sections 11.6, 11.14, 11.19, 256.9, subsection 20,
 
section 256F.8, and section 279.29, except to the extent deviations are necessary because of the program at the
 
charter school. The department, the auditor of state, or the legislative services agency may conduct financial, program, or compliance audits.
   g.  Be subject
 
eligible to and comply with
 
participate in the student achievement and teacher quality program under chapter 284 relating to the student achievement and teacher quality program. A charter school or innovation zone school that complies with chapter 284 shall receive state moneys or be eligible to receive state moneys calculated as provided in section 257.10, subsections 9 and 10, and section 257.37A as if it did not operate under a charter school or innovation zone school contract.
   h.  Be subject to and comply with chapters
 
chapter 20 and 279 relating to contracts with and discharge of teachers and administrators.
   i.  Be subject to and comply with the provisions of chapter 285 relating to the transportation of students, except that the provisions of section 285.1, subsections 14, 15, 16, and 17, shall not apply.
   j.  Meetings and records of the advisory council are subject to the provisions of chapters 21 and 22.
   j.  Comply with sections 279.9, 280.17A, 280.17B, 280.21B, 280.24, and 280.28, and may suspend or expel a student only as provided in section 282.4. A decision made as provided in section 282.4 is subject to appeal under section 290.1.
   k.  Comply with all statutes and administrative rules relating to student records, including but not limited to section 22.7, subsection 1, and sections 256H.1, 280.19A, 280.25, and 280.29, and shall submit data to the department for purposes of the department’s comprehensive management information system.
   l.  Comply with the requirements of chapter 283A.
   m.  Comply with any statewide accountability requirements in statute or administrative rule governing high school graduation requirements, the core curriculum, core content standards, and assessments. The charter school shall issue high school diplomas to students who successfully meet the graduation requirements of the charter school.
   6.  Notwithstanding subsection 2, a charter school or innovation zone school shall meet the requirements of section 256.7, subsection 21.

   8.  A charter school or innovation zone consortium may
 
shall enter into contracts in accordance with chapter 26.
    Sec. 56.  Section 256F.4, subsections 3 and 4, Code 2011, are amended by striking the subsections and inserting in lieu thereof the following:
   3.  The primary focus of a charter school shall be to provide a comprehensive program of instruction for at least one grade or age group from five through twenty-one years of age.
   4.  A charter school is a municipality for the purposes of tort liability under chapter 670.
    Sec. 57.  Section 256F.5, Code Supplement 2011, is amended by striking the section and inserting in lieu thereof the following:
   256F.5  Application.
   1.  An application to operate a charter school pursuant to this chapter shall include but not be limited to the following:
   a.  A business plan that documents the proposed charter school’s mission statement; school purposes; program design; description of a graduation plan, where applicable; financial plan; governance and management structure; and background and experience of the applicants and the initial board and instructional staff, plus any other information the state board requests. An applicant shall file a separate application for each school the applicant intends to charter.
   b.  A statement of assurances of legal compliance prescribed by the state board.
   c.  The applicant’s ability to implement the procedures and satisfy the criteria for chartering a school under this chapter.
   d.  The measures that will be implemented to provide for oversight of the charter school’s academic, financial, and operational performance, and to ensure compliance with the terms of any written contract entered into by the charter school board of directors and the state board.
   e.  A statement of support or nonsupport from the board of directors of the school district, in which the charter school would be located. The statement shall be submitted to the applicant in a timely manner by the school district board.
   f.  A statement demonstrating community support.
   g.  A statement of admission policies and procedures.
   h.  The types and amounts of insurance liability coverage to be obtained by the charter school.
   i.  How special instruction, programs, and services for children requiring special education and English language learners under chapter 256B and section 280.4 will be made available and a description of the financial parameters within which the special instruction, programs, and services will be made available.
   2.  If the applicant includes a school district pursuant to section 256F.2, subsection 1, paragraph “a”, “b”, “d”, “f”, “h”, “i”, or “j”, that will, under the plan submitted, convert an existing attendance center operated by the school district into a charter school in accordance with this chapter, the application shall demonstrate the support of at least fifty percent of the teachers employed at the school on the date of the submission of the application and fifty percent of the parents or guardians voting whose children are enrolled at the school, provided that a majority of the parents or guardians eligible to vote participate in the ballot process, according to procedures established by rules of the state board. Conversion of an existing school to a charter school if approved pursuant to this chapter shall occur at the beginning of an academic year.
   3.
  a.  The state board shall approve or disapprove an application within ninety business days of receipt of the application.
   b.  If the state board disapproves the application, the state board shall notify the applicant of the specific deficiencies in writing and the applicant shall have twenty business days to address the deficiencies to the state board’s satisfaction.

   (1)  If the applicant addresses the deficiencies within the time specified, the state board shall at its next regularly scheduled meeting make a final decision to approve or disapprove the application.
   (2)  If the applicant fails to address the deficiencies in the time specified, the state board shall notify the applicant that the application is denied and the decision of the state board is final agency action under chapter 17A.
   c.  An applicant whose application is denied pursuant to the process specified in this subsection shall not submit another application until the expiration of at least one calendar year after notification of the denial of application. 
   4.  The state board shall establish criteria for application approval that at a minimum consider the following:
   a.  A comprehensive review of the application.
   b.  The available capacity and infrastructure identified in the plan.
   c.  Contracting process specified in the plan.
   d.  Ongoing oversight and evaluation processes relating to administration and staffing.
   e.  Charter school contract and contract renewal criteria and processes.
   5.  Approval of an application and renewal of a charter by the state board shall not be conditioned upon the bargaining unit status of the employees of the school.
    Sec. 58.  Section 256F.6, Code 2011, is amended by striking the section and inserting in lieu thereof the following:
   256F.6  Formation of school —— board.
   1.  An operator who successfully completes the orientation program required pursuant to section 256F.3, subsection 1, before entering into a contract or other agreement for professional or other services, goods, or facilities, shall incorporate as a nonprofit corporation under chapter 504 and shall establish an initial board of directors composed of at least five voting members, who are not related parties, until a timely election for members of the ongoing charter school board of directors is held according to the school’s articles and bylaws.
   2.  Members of the charter school board of directors established under the school’s articles and bylaws shall be elected before the school completes its third year of operation. The articles and bylaws shall require that the board be composed of not less than five voting members. The articles and bylaws shall include clear policies regarding conflicts of interest, standards of responsibility, and obedience to law, fairness, and honesty.
   3.  Staff members employed at the school and all parents or guardians of children enrolled in the school are the voters eligible to elect the members of the school’s board of directors.
   4.  A charter school shall notify eligible voters of the school board election dates at least thirty days before the election. Board elections shall be held during the school year but may not be conducted on days when the school is closed for holidays or vacations.
   5.
  a.  Any charter school board of directors shall be composed of the following:
   (1)  Notwithstanding section 279.7A, at least one licensed teacher employed at the school.
   (2)  At least one parent or legal guardian of a student enrolled in the charter school who is not an employee of the charter school.
   (3)  At least one interested community member who is not employed by the charter school and does not have a child enrolled in the school.
   b.  The majority of members on the board may be teachers, notwithstanding section 279.7A.
   c.  The chief financial officer and the chief administrator of the charter school, if elected, shall only serve as ex officio, nonvoting board members.

   d.  Charter school employees shall not serve on the board except as provided in this subsection. 
   e.  Except as provided in section 279.7A, contractors providing facilities, goods, or services to a charter school shall not serve on the board.
   f.  Board articles and bylaws shall outline the process and procedures for changing the board’s governance model, consistent with chapter 504.
   6.  A charter school board may change the governance model set forth in the application or in the articles and bylaws of the charter school only if the change conforms with this section and a majority of the board approves the change; the licensed teachers employed by the school approve the change; and the state board approves the change.
   7.
  a.  The state board may permit a charter school board to expand the operation of the charter school to additional sites or to add grades at the school beyond those described in the operator’s approved application only after submitting a supplemental affidavit for approval to the state board in a form and manner prescribed by the state board. The supplemental affidavit shall include the following:
   (1)  A proposed expansion plan that demonstrates need and projected enrollment.
   (2)  Documentation that the expansion is warranted, at a minimum, by longitudinal data demonstrating students’ improved academic performance and growth on student assessments.
   (3)  Documentation that the charter school is financially sound and the financing the charter school needs to implement the proposed expansion exists.
   (4)  Documentation that the charter school has the governance structure and management capacity to carry out the expansion.
   b.  The state board shall have sixty business days to review and comment on the supplemental affidavit. The state board shall notify the charter school board of any deficiencies in the supplemental affidavit and the charter school board shall have twenty business days to address, to the state board’s satisfaction, any deficiencies in the supplemental affidavit. The school shall not expand to additional sites or add grades until the state board approves the supplemental affidavit. The state board’s approval or disapproval of a supplemental affidavit is final agency action.
   8.  The charter school board of directors is a government or governmental body for purposes of chapters 21 and 22.
   9.  Except as provided in subsection 5, members of the board are subject to section 279.7A.
    Sec. 59.  Section 256F.8, Code 2011, is amended by striking the section and inserting in lieu thereof the following:
   256F.8  Audit report.
   1.  The charter school shall annually submit an audit report to the state board by December 31.
   2.  The charter school, with the assistance of the auditor conducting the audit, shall include with the report a copy of all charter school agreements for corporate management services. If the entity that provides the professional services to the charter school is exempt from taxation under section 501 of the Internal Revenue Code of 1986, that entity must file with the state board by February 15 a copy of the annual return required under section 6033 of the Internal Revenue Code of 1986.
   3.  If the audit report finds that a material weakness exists in the financial reporting systems of a charter school, the charter school shall submit a written report to the state board at its first annual meeting explaining how the material weakness will be resolved. An auditor conducting the audit of the charter school, as a condition of providing financial services to a charter school, shall agree to make available information about a charter school’s financial audit to the state board upon request.
    Sec. 60.  Section 256F.9, Code 2011, is amended by striking the section and inserting in lieu thereof the following:
   256F.9  Admission requirements.
   1.  A charter school may limit admission to the following:
   a.  Students within an age group or grade level.
   b.  Students who are either at risk of dropping out or have dropped out of school.
   c.  Residents of a specific geographic area in which the school is located when the majority of students served by the school are eligible for free and reduced price meals under the federal National School Lunch Act and the federal Child Nutrition Act of 1966, 42 U.S.C. § 1751-1785.
   2.  A charter school shall enroll an eligible student who submits a timely application, unless the number of applications exceeds the capacity of a program, class, grade level, or building. In such case, students shall be accepted by lot. The charter school shall develop and publish a lottery policy and process for use when accepting students by lot.
   3.  A charter school shall give enrollment preference to a sibling of an enrolled student and to a foster child of that student’s parents and may give preference for enrolling children of the school’s staff before accepting other students by lot.
   4.  A charter school shall not limit admission to students on the basis of intellectual ability, measures of achievement or aptitude, or athletic ability and shall not establish any criteria or requirements for admission that are inconsistent with this section.
   5.  The charter school shall not distribute any services or goods of value to students, parents, or guardians as an inducement, term, or condition of enrolling a student in a charter school.
    Sec. 61.  Section 256F.10, Code 2011, is amended by striking the section and inserting in lieu thereof the following:
   256F.10  Employment and other operating matters.
   A charter school shall employ or contract with necessary teachers and administrators, as defined by chapter 256, who hold valid licenses and endorsements to perform the particular service for which they are employed in the school. The school may employ necessary employees who are not required to hold teaching licenses to perform duties other than teaching and may contract for other services.
    Sec. 62.  NEW SECTION.  256F.11  Leased space.
   If space to be leased is constructed as a school facility, a charter school may lease such space from a school district or other public organization; private, nonprofit nonsectarian organization; private property owner; or a sectarian organization.
    Sec. 63.  NEW SECTION.  256F.12  Affiliated nonprofit building corporation.
   1.  A charter school may organize an affiliated nonprofit building corporation to renovate or purchase an existing facility to serve as a school or to construct a new school facility as provided in subsection 4 or 5.
   2.  An affiliated nonprofit building corporation shall meet all of the following conditions:
   a.  Be incorporated under chapter 504 and comply with applicable internal revenue service regulations.
   b.  Submit annually to the state board a list of current board members and a copy of the corporation’s annual audit.
   3.  An affiliated nonprofit building corporation shall not serve as the leasing agent for property or facilities it does not own. The state is immune from liability resulting from a contract between a charter school and an affiliated nonprofit building corporation.
   4.  A charter school may organize an affiliated nonprofit building corporation to renovate or purchase an existing facility to serve as a school if the charter school meets the following criteria:
   a.  Has been operating for at least five consecutive school years.

   b.  Has had a net positive unreserved general fund balance as of June 30 in the preceding five fiscal years.
   c.  Has a long-range strategic and financial plan.
   d.  Completes a feasibility study of available buildings.
   e.  Documents enrollment projections and the need to use an affiliated nonprofit building corporation to renovate or purchase an existing facility to serve as a school.
   5.  A charter school may organize an affiliated nonprofit building corporation to construct a new school facility if the charter school meets the following conditions:
   a.  Lacks facilities available to serve as a school.
   b.  Has been operating for at least eight consecutive school years.
   c.  Has had a net positive unreserved general fund balance as of June 30 in the preceding eight fiscal years.
   d.  Completes a feasibility study of facility options.
   e.  Has a long-range strategic and financial plan that includes enrollment projections and demonstrates the need for constructing a new school facility.
    Sec. 64.  NEW SECTION.  256F.13  Collective bargaining.
   Employees of the board of directors of a charter school may, if otherwise eligible, organize under chapter 20 and comply with its provisions. The board of directors of a charter school is a public employer, for the purposes of chapter 20, upon formation of one or more bargaining units at the school. Bargaining units at the school shall be separate from any other units within the school district in which the charter school is located, except that bargaining units may remain part of the appropriate bargaining unit of the school district within which the charter school is located if the employees of the charter school, the board of directors of the charter school, the exclusive representative of the appropriate bargaining unit in the school district, and the board of the school district agree to include the employees in the appropriate bargaining unit of the school district.
    Sec. 65.  NEW SECTION.  256F.14  Teacher retirement.
   Teachers in a charter school are public school teachers for the purposes of chapter 97B.
    Sec. 66.  NEW SECTION.  256F.15  Causes for nonrenewal or termination of charter school contract.
   1.  The state board may decline to renew a contract entered into with the board of directors of a charter school at the end of the contract term for any ground listed in subsection 3. The state board may unilaterally terminate a contract during the term of the contract for any ground listed in subsection 3. 
   2.  At least sixty business days before not renewing or terminating a contract, the state board shall notify the board of directors of the charter school of the proposed action in writing. The notice shall state the grounds for the proposed action in reasonable detail and that the charter school’s board of directors may request in writing a hearing before the state board within fifteen business days of receiving notice of nonrenewal or termination of the contract. Failure by the board of directors to make a written request for a hearing within the time specified shall be treated as acquiescence to the proposed action. Upon receiving a timely written request for a hearing, the state board shall give ten business days’ notice to the charter school’s board of directors of the hearing date. The state board shall conduct the hearing before taking final action. The state board shall take final action to renew or not renew a contract no later than twenty business days before the proposed date for terminating the contract or the end date of the contract.
   3.  A charter school contract entered into with the state board may be terminated or not renewed by the state board upon any of the following grounds:
   a.  Failure to meet the requirements for student performance contained in the contract.
   b.  Failure to meet generally accepted standards of fiscal management.

   c.  Violations of law.
   d.  Other good cause shown, including but not limited to the existence of one or more other grounds for revocation as specified in the contract.
   4.  If a contract is terminated or not renewed on grounds specified in subsection 3, the school shall be dissolved according to rules adopted by the state board, and the assets of the charter school shall be disposed of according to the applicable provisions of chapter 504.
   5.  The state board, after providing reasonable notice to the board of directors of a charter school, and after providing an opportunity for a public hearing, may terminate the existing contract with the charter school board if the charter school has a history of the following:
   a.  Failure to meet student performance requirements consistent with state law.
   b.  Financial mismanagement or gross failure to meet generally accepted standards of fiscal management.
   c.  Violations of the law.
    Sec. 67.  NEW SECTION.  256F.16  Student enrollment upon nonrenewal or termination of charter school contract.
   If a contract is not renewed or is terminated according to section 256F.15, a student who attended the charter school may enroll in the district of residence or may submit an application to a nonresident district according to section 282.18 at any time, and shall be determined to have shown “good cause” for purposes of section 282.18. Applications and notices required by section 282.18 shall be processed and provided in a prompt manner. The application and notice deadlines in section 282.18 do not apply under these circumstances. The charter school shall transfer the student’s educational records within ten business days of the charter school’s closure to the student’s school district of enrollment.
    Sec. 68.  NEW SECTION.  256F.17  Extent of specific legal authority.
   1.  A charter school board may sue and be sued.
   2.  A charter school board shall not levy taxes or issue bonds.
   3.  A charter school is a municipality for purposes of chapter 670.
    Sec. 69.  NEW SECTION.  256F.18  Funding.
   A student enrolled in a charter school shall be counted, for state school foundation aid purposes, in the student’s district of residence. A student’s residence, for purposes of this section, means a residence under section 282.1. The board of directors of the district of residence shall pay to the charter school the district cost per pupil, the teacher salary supplement district cost per pupil, the professional development supplement district cost per pupil, and the early intervention supplement district cost per pupil under section 257.10, plus any moneys received for the student as a result of the non-English speaking weighting under section 280.4, subsection 3, for the previous school year multiplied by the district cost per pupil for the previous year. In addition, the board of directors of the district of residence shall pay to the charter school any other per pupil moneys requested under the charter school application approved by the state board.
    Sec. 70.  NEW SECTION.  256F.19  Prior charter schools and innovation zones.
   1.  A charter school or innovation zone school established prior to July 1, 2012, shall continue to be governed by chapter 256F, Code 2011 and Code Supplement 2011, until the term of the contract entered into pursuant to section 256F.8, Code 2011, ends.
   2.  This section is repealed July 1, 2018.
    Sec. 71.  Section 282.18, subsection 4, paragraph b, Code 2011, is amended to read as follows:
   b.  For purposes of this section, “good cause” means a change in a child’s residence due to a change in family residence, a change in the state in which the family residence is located, a change in a child’s parents’ marital status, a guardianship or custody proceeding, placement in foster care, adoption, participation in a foreign exchange program, or participation in a substance abuse or mental health treatment program, a change in the status of a child’s resident district such as removal of accreditation by the state board, surrender of accreditation, or permanent closure of a nonpublic school, revocation
 
nonrenewal or termination of a charter school contract as provided in section 256F.8
 
256F.15, the failure of negotiations for a whole grade sharing, reorganization, dissolution agreement or the rejection of a current whole grade sharing agreement, or reorganization plan. If the good cause relates to a change in status of a child’s school district of residence, however, action by a parent or guardian must be taken to file the notification within forty-five days of the last board action or within thirty days of the certification of the election, whichever is applicable to the circumstances.
    Sec. 72.  Section 670.1, subsection 2, Code 2011, is amended to read as follows:
   2.  “Municipality” means city, county, township, school district,
 
charter school, and any other unit of local government except soil and water conservation districts as defined in section 161A.3, subsection 6.
    Sec. 73.  REPEAL.  Section 256F.7, Code 2011, is repealed.

DIVISION XIV

THIRD GRADE LITERACY
    Sec. 74.  Section 256.7, Code Supplement 2011, is amended by adding the following new subsection:
   NEW SUBSECTION.  31.  By July 1, 2013, adopt by rule guidelines for school district implementation of section 279.68, including but not limited to basic levels of reading proficiency on approved assessments and identification of tools that school districts may use in evaluating and reevaluating any student who may be or who is determined to be deficient in reading, including but not limited to initial assessments and subsequent assessments, alternative assessments, and portfolio reviews. The state board shall adopt standards that provide a reasonable expectation that a student’s progress toward reading proficiency under section 279.68 is sufficient to master appropriate grade four level reading skills prior to the student’s promotion to grade four.
    Sec. 75.  Section 256.9, subsection 53, paragraph a, Code Supplement 2011, is amended to read as follows:
   a.  Develop and distribute,
 
or approve, in collaboration with the area education agencies, core curriculum technical assistance and implementation strategies that school districts and accredited nonpublic schools shall utilize, including but not limited to the development and delivery of formative and end-of-course model assessments classroom teachers may use to measure student progress on the core curriculum adopted pursuant to section 256.7, subsection 26. The department shall, in collaboration with the advisory group convened in accordance with paragraph “b” and educational assessment providers, identify and make available to school districts end-of-course and additional model end-of-course and additional assessments to align with the expectations included in the Iowa core curriculum. The model assessments shall be suitable to meet the multiple assessment measures requirement specified in section 256.7, subsection 21, paragraph “c”.
    Sec. 76.  Section 256.9, subsection 53, Code Supplement 2011, is amended by adding the following new paragraphs:
   NEW PARAGRAPH.  c.  Identify the scoring levels on approved grade three reading assessments that require the retention of a student pursuant to section 279.68, and develop or identify and approve alternative performance measures for students who are not proficient in reading in accordance with section 279.68, subsection 2. Alternative performance measures approved pursuant to this paragraph shall include but not be limited to a demonstration of reading mastery evidenced by portfolios of student work.
   NEW PARAGRAPH.  d.  Establish, subject to an appropriation of sufficient funds by the general assembly, an Iowa reading research center to apply current research on literacy to provide for the development and dissemination of all of the following:
   (1)  Promising instructional strategies in reading.
   (2)  Reading assessments.
   (3)  Professional development strategies and materials aligned with current and emerging best practices for the teaching of reading.
    Sec. 77.  Section 256D.2A, Code 2011, is amended to read as follows:
   256D.2A  Program funding.
   For the budget year beginning July 1, 2009, and each succeeding budget year, a school district shall expend funds received pursuant to section 257.10, subsection 11, at the kindergarten through grade three levels to reduce class sizes to the state goal of seventeen students for every one teacher and to achieve a higher level of student success in the basic skills, especially reading; and to establish a reading enhancement and acceleration development initiative pursuant to section 279.68, subsection 3, paragraph “f”. In order to support these efforts, school districts
 
shall expend funds received pursuant to section 257.10, subsection 11, as provided in section 279.68, subsection 3, paragraph “f”, and may expend funds received pursuant to section 257.10, subsection 11, at the kindergarten through grade three level on programs, instructional support, and materials that include but are not limited to the following:  additional licensed instructional staff; additional support for students, such as before and after school programs, tutoring, and intensive summer programs; the acquisition and administration of diagnostic reading assessments; the implementation of research-based instructional intervention programs for students needing additional support; the implementation of all-day, everyday kindergarten programs; and the provision of classroom teachers with intensive training programs to improve reading instruction and professional development in best practices including but not limited to training programs related to instruction to increase students’ phonemic awareness, reading abilities, and comprehension skills.
    Sec. 78.  NEW SECTION.  279.68  Student progression and retention —— remedial instruction —— reporting requirements.
   1.  Reading deficiency and parental notification.
   a.  A school district shall provide intensive reading instruction to any student who exhibits a substantial deficiency in reading, based upon locally determined or statewide assessments conducted in kindergarten or grade one, grade two, or grade three, or through teacher observations, immediately following the identification of the reading deficiency. The student’s reading proficiency shall be reassessed by locally determined and statewide assessments. The student shall continue to be provided with intensive reading instruction until the reading deficiency is remedied.
   b.  The parent or guardian of any student in kindergarten through grade three who exhibits a substantial deficiency in reading, as described in paragraph “a”, shall be notified at least annually in writing of the following:
   (1)  That the child has been identified as having a substantial deficiency in reading.
   (2)  A description of the services currently provided to the child.
   (3)  A description of the proposed supplemental instructional services and supports that the school district will provide to the child that are designed to remediate the identified area of reading deficiency.
   (4)  That if the child’s reading deficiency is not remediated by the end of grade three, the child shall be retained unless the child is exempt from mandatory retention for good cause pursuant to subsection 2, paragraph “b”. If the child is ineligible for a good cause exemption, the notification shall state why the child is ineligible.
   (5)  Strategies for parents and guardians to use in helping the child succeed in reading proficiency, including but not limited to the promotion of parent-guided home reading.
   (6)  That the assessment used pursuant to section 256.9, subsection 53, is not the sole determiner of promotion and that additional evaluations, portfolio reviews, performance measures, and assessments are available to the child to assist parents and the school district in knowing when a child is reading at or above grade level and ready for grade promotion.
   (7)  The district’s specific criteria and policies for midyear promotion. For purposes of this section, “midyear promotion” means promotion to the next grade level of a retained student at any time during the year of retention once the student has demonstrated the ability to read at grade level.
   c.  If the student’s reading deficiency, as identified in paragraph “a”, is not remedied by the end of grade three, as demonstrated by scoring on an assessment approved by the department pursuant to section 256.9, subsection 53, the student shall be retained in grade three.
   2.  Good cause exemption.
   a.  The school district shall only exempt students from mandatory retention, as provided in subsection 1, paragraph “c”, for good cause. Good cause exemptions shall be limited to the following:
   (1)  Limited English proficient students who have had less than two years of instruction in an English as a second language program.
   (2)  Students requiring special education whose individualized education program indicates that participation in the assessment approved pursuant to section 256.9, subsection 53, is not appropriate, consistent with the requirements of rules adopted by the state board of education for the administration of chapter 256B.
   (3)  Students who demonstrate an acceptable level of performance on an alternative performance measure approved by the director of the department of education pursuant to section 256.9, subsection 53.
   (4)  Students who demonstrate mastery through a student portfolio under alternative performance measures approved pursuant to section 256.9, subsection 53.
   (5)  Students who have received intensive remediation in reading for two or more years but still demonstrate a deficiency in reading and who were previously retained in kindergarten, grade one, grade two, or grade three. Intensive reading instruction for students so promoted must include an altered instructional day that includes specialized diagnostic information and specific reading strategies for each student. The school district shall assist attendance centers and teachers to implement reading strategies that research has shown to be successful in improving reading among low-performing readers.
   b.  Requests for good cause exemptions from the mandatory retention requirement for students as described in paragraph “a”, subparagraphs (3) and (4), shall be made consistent with the following:
   (1)  Documentation shall be submitted from the student’s teacher to the school principal that indicates that the promotion of the student is appropriate and is based upon the student’s academic record. Such documentation shall include but not be limited to the individualized education program, if applicable, report card, or student portfolio.
   (2)  The school principal shall review and discuss the recommendation submitted pursuant to subparagraph (1) with the teacher and the school principal shall determine whether the student should be promoted or retained. If the principal determines that the student should be retained, the principal shall notify the student’s teacher and parent or guardian of the decision in writing and the student shall be ineligible for the good cause exemption from mandatory retention.
   (3)  If the school principal determines that the student should be promoted, the school principal shall make such recommendation in writing to the district school superintendent. The district school superintendent shall accept or reject the school principal’s recommendation and shall notify the school principal and the student’s teacher and parent or guardian of the school superintendent’s decision in writing. If the school superintendent determines that the student should be retained, the student shall be ineligible for the good cause exemption from mandatory retention. The parent or guardian of the student may appeal the superintendent’s decision to the board of directors of the school district. If the superintendent’s decision is affirmed by the school board, the decision is final and is not subject to appeal under section 290.1.
   c.  This section does not preclude the parent or guardian of a student with a reading deficiency from requesting that the student be retained at grade level.
   3.  Successful progression for retained readers.
  A school district shall do all of the following:
   a.  Conduct a review, within one week following the last instructional day of the school calendar, of student progress for any student retained under subsection 1, paragraph “c”, who did not meet the criteria for one of the good cause exemptions in subsection 2, paragraph “a”. The review shall address additional supports and services, as described in subparagraph (2), needed to remediate the identified areas of reading deficiency. The school district shall require a student portfolio to be completed for each such student.
   b.  Provide students who are retained under subsection 1, paragraph “c”, with intensive instructional services and supports, free of charge, to remediate the identified areas of reading deficiency, including a minimum of a daily ninety-minute block of scientific-research-based reading instruction and other strategies prescribed by the school district which may include but are not limited to the following:
   (1)  Small group instruction.
   (2)  Reduced teacher-student ratios.
   (3)  More frequent progress monitoring.
   (4)  Tutoring or mentoring.
   (5)  Transition classes containing students in grades three and four.
   (6)  Extended school day, week, or year.
   (7)  Summer reading programs.
   c.  At regular intervals, apprise the parent or guardian of academic and other progress being made by the student and give the parent or guardian other useful information.
   d.  Implement a policy for the midyear promotion of any student retained under subsection 1, paragraph “c”, who can demonstrate that the student is a successful and independent reader, reading at or above grade level, and ready to be promoted to grade four. Tools that school districts may use in reevaluating any student retained may include subsequent assessments, alternative assessments, and portfolio reviews, identified by rule pursuant to section 256.7, subsection 31. Students promoted during the school year after November 1 shall demonstrate proficiency pursuant to guidelines adopted by rule pursuant to section 256.7, subsection 31.
   e.  In addition to required reading enhancement and acceleration strategies, provide parents of students who are retained under subsection 1, paragraph “c”, with a plan outlined in a parental contract, including participation in regular parent-guided home reading.
   f.  Establish, using funds received pursuant to section 257.10, subsection 11, a reading enhancement and acceleration development initiative designed to prevent the retention of grade three students and to offer intensive accelerated reading instruction to grade three students who fail to meet standards for promotion to grade four and to each kindergarten through grade three student who is assessed as exhibiting a reading deficiency. The initiative shall comply with all of the following criteria:
   (1)  Be provided to all kindergarten through grade three students at risk of retention under this section. The assessment initiative shall measure phonemic awareness, phonics, fluency, vocabulary, and comprehension.
   (2)  Be provided during regular school hours in addition to the regular reading instruction.
   (3)  Provide a reading curriculum that meets guidelines adopted pursuant to section 256.7, subsection 31, and at a minimum has the following specifications:
   (a)  Assists students assessed as exhibiting a reading deficiency in developing the ability to read at grade level.
   (b)  Provides skill development in phonemic awareness, phonics, fluency, vocabulary, and comprehension.
   (c)  Includes a scientifically based and reliable assessment.
   (d)  Provides initial and ongoing analysis of each student’s reading progress.
   (e)  Is implemented during regular school hours.
   (f)  Provides a curriculum in core academic subjects to assist the student in maintaining or meeting proficiency levels for the appropriate grade in all academic subjects.
   g.  Report to the department of education the specific intensive reading interventions and supports implemented by the school district pursuant to this section. The department shall annually prescribe the components of required or requested reports, including but not limited to a report on the number of students retained under this section.
   h.  Provide a student who has been retained in grade three and who has received intensive instructional services but is still not ready for grade promotion, as determined by the school district, the option of being placed in a transitional instructional setting. Such setting shall specifically be designed to produce learning gains sufficient to meet grade four performance standards while continuing to remediate the areas of reading deficiency.
   4.  Notwithstanding subsection 1, paragraph “b”, subparagraph (4), or any other provision of law to the contrary, a school district shall not be required to retain a student in grade three who exhibits a substantial deficiency in reading in accordance with this section until the school year beginning July 1, 2016. This subsection is repealed July 1, 2016.

DIVISION XV

HOME RULE AUTHORITY
    Sec. 79.  NEW SECTION.  274.3  Exercise of powers —— construction.
   1.  The board of directors of a school district shall operate, control, and supervise all public schools located within its district boundaries and may exercise any broad and implied power related to the operation, control, and supervision of those public schools except as expressly prohibited or prescribed by the Constitution of the State of Iowa or by statute.
   2.  Notwithstanding subsection 1, the board of directors of a school district shall not have power to levy any tax unless expressly authorized by the general assembly.
   3.  This section shall not apply to a research and development school as defined in section 256G.2 or to a laboratory school as defined in section 265.1. The board of directors of a school district in which such a research and development school or laboratory school is located shall not exercise over such a school any powers granted to the board by subsection 1.
   4.  This chapter, chapter 257 and chapters 275 through 301, and other statutes relating to the boards of directors of school districts and to school districts shall be liberally construed to effectuate the purposes of subsection 1.

DIVISION XVI

ONLINE LEARNING INTERIM STUDY
    Sec. 80.  ONLINE LEARNING —— INTERIM STUDY.  The legislative council is requested to establish an interim study committee relating to online learning and programming for school districts and related educational issues. The objective of the study shall be to review the appropriate use of online learning by school districts, the appropriate levels and sources of funding for online learning, partnerships between school districts and private providers of online programs, and the potential use of online learning as the exclusive means to provide coursework required under the state’s educational standards. The study shall identify opportunities between interested agencies and entities involved in or potentially involved in online learning activities, including but not limited to K-12 schools, area education agencies, institutions of higher learning, the public broadcasting division of the department of education, the department of education, and the Iowa communications network. The committee is directed to submit its findings and recommendations in a report to the general assembly by December 14, 2012.

DIVISION XVII

STATE MANDATE
    Sec. 81.  STATE MANDATE FUNDING SPECIFIED.  In accordance with section 25B.2, subsection 3, the state cost of requiring compliance with any state mandate included in this Act shall be paid by a school district from state school foundation aid received by the school district under section 257.16. This specification of the payment of the state cost shall be deemed to meet all of the state funding-related requirements of section 25B.2, subsection 3, and no additional state funding shall be necessary for the full implementation of this Act by and enforcement of this Act against all affected school districts.
EXPLANATION
   This bill relates to programs and activities under the purview of the department of education, the board of educational examiners, school districts, and accredited nonpublic schools.
   DIVISION I —— COMPETENCY-BASED INSTRUCTION. The bill provides for the appointment of a competency-based instruction task force and extends until May 1, 2012, the time by which school districts may submit to the department of education a request for an exemption from the educational standards in order to create competency-based pathways for students that use standards and evidence as the baseline for competency determinations and bases advancement and credit on what students know or are able to do rather than on time spent in the classroom.
   The superintendents of the school districts whose exemptions have already been approved by the department are directed to appoint a task force to conduct a study regarding competency-based instruction standards and options and the integration of competency-based instruction with the Iowa core curriculum, and to develop related assessment models and professional development focused on competency-based instruction.
   At a minimum, the task force shall redefine the Carnegie unit into competencies, construct personal learning plans and templates, develop student-centered accountability and assessment models, empower learning through technology, and develop supports and professional development for educators to transition to a competency-based system.
   The task force shall be comprised of at least 16 members, nine of whom shall represent education stakeholders and practitioners knowledgeable about the Iowa core curriculum; one of whom shall be the deputy director and administrator of the division of learning and results of the department of education or the deputy director’s designee; one of whom shall represent the area education agencies (AEAs); one of whom shall represent the Iowa state education association; and four of whom shall represent the general assembly. The four members of the general assembly shall serve as ex officio, nonvoting members. The department of education shall provide staffing services for the task force.
   The task force shall submit its plan, findings, models, and recommendations in a final report to the state board of education, the governor, and the general assembly by January 15, 2013.
   This division takes effect upon enactment.
   DIVISION II —— CORE CURRICULUM FRAMEWORK AND CORE CONTENT STANDARDS. The bill establishes the core curriculum advisory council under the department of education. Upon request by the director of the department of education, the council is to make nonbinding recommendations to the director regarding necessary changes to the core curriculum. The council is directed to seek to further the goals of the core curriculum and any objectives established by the director in making recommendations. The council consists of no less than seven members appointed by and serving at the pleasure of the director. The council must be balanced by gender and political party. The council is to meet at least quarterly and at the call of the chair of the council. Members of the council serve without compensation but may be reimbursed for their actual expenses incurred in the performance of their duties.
   The bill adds the subjects of music and other fine arts, applied arts, foreign languages, physical education,and entrepreneurship education to the skills and knowledge the core curriculum for kindergarten through grade 12 must address.
   The director must create and disseminate to school districts, charter schools, and accredited nonpublic schools a model curriculum that is directly tied to the goals, outcomes, and assessment strategies identified in the core content standards. The model curriculum shall provide guidance to school districts and schools and expand on the core content standards. The model curriculum shall be modified as necessary to incorporate the core curriculum framework.
   DIVISION III —— TEACHER AND ADMINISTRATOR PERFORMANCE. The bill directs the state board to adopt new Iowa teaching and administration standards by January 1, 2013, and to implement statewide teacher and administrator evaluation system pilot programs during the 2013-2014 school year; provides for the appointment of a teacher performance, compensation, and career development task force to develop recommendations for a new teacher compensation system; directs the director of the department of education to develop a statewide teacher evaluation system and a statewide administrator evaluation system that school districts, charter schools, and accredited nonpublic schools shall use to standardize the instruments and processes used to evaluate teachers and administrators throughout the state; provides for the creation of a task force to conduct a study regarding a statewide teacher evaluation system and a statewide administrator evaluation system; and requires that public school teachers and administrators be evaluated annually rather than every three years, and that the evaluation of a teacher be conducted by at least one person who holds a valid certification issued for successfully completing an evaluator training program.
   The bill sets out the minimum components of the statewide teacher evaluation system, including direct observation of classroom teaching behaviors, strong consideration of student outcome measures, integration of the Iowa teaching standards, and system applicability to teachers in all content areas taught by a school. The bill allows charter schools and accredited nonpublic schools to implement an alternative teacher or administrator evaluation system if the department approves the alternative system.
   The director is tasked with appointing members to, and providing staffing for, the teacher performance, compensation, and career development task force, including members representing teachers, parents, school administrators, and business and community leaders. The task force is directed to address the duties and responsibilities of apprentice, career, mentor, and master teachers; utilizing retired teachers as mentors; uses and realignment of finite resources; mechanisms to substantially increase the average salary of teachers who assume leadership roles; and standardizing implementation of task force recommendations in all of Iowa’s school districts and public charter schools. The task force must submit its findings and recommendations in a report to the state board of education, the governor, and the general assembly by October 15, 2012.
   The statewide educator evaluation system task force must submit its findings, recommendations, and a proposal for a statewide teacher evaluation system and a statewide administrator evaluation system to the state board of education and the general assembly by October 15, 2012. The task force must include a tiered evaluation system differentiating levels of teacher effectiveness in its recommendations and proposal. By November 26, 2012, the department must submit a departmental bill drafting request to the legislative services agency in bill draft format making specific and detailed proposed amendments to the Code necessary to advance the proposed task force recommendations as approved by the state board.
   The provisions providing for appointment of the task forces take effect upon enactment.
   The bill makes a repeal of language in the bill relating to the statewide teacher evaluation system and the statewide administrator evaluation system contingent on whether the general assembly takes action during the 2013 regular session to enact legislation advancing recommendations of the statewide educator evaluation system task force.
   The bill repeals the current Iowa teaching standards on July 1, 2013. The bill also repeals a Code provision that established a career ladder pilot program to be administered by the department of education from 2007 through 2009. The final report on the pilot program was submitted to the general assembly in March 2010.
   The bill makes a technical correction to a reference relating to transfer of the duties of certain licensing responsibilities to the state board of education and department of education under division X of this bill.
   DIVISION IV —— INNOVATION ACCELERATION PROGRAM —— FUND. The bill establishes an innovation acceleration program in the department of education and creates an innovation acceleration fund in the state treasury under the control of the department.
   The purpose of the innovation acceleration program is to provide competitive grants to applicants with a record of improving student achievement and educational attainment in order to expand the implementation of, and investment in, innovative practices that are demonstrated to have an impact on improving student achievement or student growth, closing achievement gaps, decreasing dropout rates, increasing parental involvement, increasing attendance rates, increasing high school graduation rates, or increasing college enrollment and completion rates.
   The program shall be designed to enable grantees to expand and develop innovative practices that can serve as models of best practices, work in partnership with the private sector and the philanthropic community, and identify and document best practices that can be shared and expanded based on demonstrated success.
   The innovation acceleration fund shall be administered by the director of education and shall consist of moneys appropriated by the general assembly and any other moneys available to and obtained or accepted by the department for the program. 
   DIVISION V —— ONLINE LEARNING. The bill provides that the term “telecommunications” for purposes of Code chapter 256 shall include coursework delivered online, as appropriate. Further, resident pupils receiving coursework delivered online shall be counted for school foundation aid purposes as three-tenths of one pupil.
   Currently the statute provides that telecommunications shall not be used by school districts as the exclusive means to provide any course which is required by the minimum educational standards for accreditation.
   DIVISION VI —— EDUCATIONAL STANDARDS EXEMPTIONS. The bill permits the director of the department of education to grant school districts exemptions from one or more of the educational standards for all grades and all subject areas currently required to be offered, from prekindergarten through grade 12, if the school district meets certain requirements specified for charter schools, including provisions that require a charter school to meet all applicable federal, state, and local health and safety requirements and laws prohibiting discrimination; operate as a nonsectarian, nonreligious public school; be free of tuition and application fees to Iowa resident students between the ages of 5-21 years; be subject to and comply with Code chapters 216 and 216A relating to civil and human rights; provide special education services; be subject to the same financial audits, audit procedures, and audit requirements as a school district; be subject to and comply with provisions relating to the student achievement and teacher quality program; be subject to and comply with state law relating to contracts with and discharge of teachers and administrators; be subject to and comply with state law relating to the transportation of students; comply with state and federal law relating to the suspension or expulsion of a student; comply with all statutes and administrative rules relating to student records; submit data to the department for purposes of the department’s comprehensive management information system; comply with administrative rules relating to courses or programs offered online or use of telecommunications as an instructional tool; and comply with any statewide accountability requirements in statute or administrative rule governing high school graduation requirements, the core curriculum, core content standards, and assessments.
   Currently, the director may grant school districts and accredited nonpublic schools an exemption from one or more of the educational standards for grades 9 through 12, including but not limited to unit requirements for science, social studies, English-language arts, mathematics, foreign language, vocational service, and health and physical education.
   The bill requires the director to submit a report by February 1, annually, to the state board, the governor, and the general assembly that lists all of the exemptions granted to school districts and accredited nonpublic schools and the reasons for which each exemption was granted.
   The bill makes a reference to charter school requirements included in division XV of the bill.
   DIVISION VII —— EDUCATION JOB OPENINGS POSTING. The director of the department is directed to maintain, on the department’s internet site, education job openings which shall be submitted by school districts, area education agencies, charter schools, and accredited nonpublic schools for posting.
   DIVISION VIII —— CLASS SHARING AGREEMENTS. The bill expands eligibility for the supplementary weighting plan for district-to-community college sharing and concurrent enrollment programs to allow a school district that collaborates with a community college for a college-level class that uses an activities-based, project-based, and problem-based learning approach and that is offered through a partnership with a nationally recognized provider of rigorous and innovative science, technology, engineering, and mathematics curriculum for schools, which provider is exempt from taxation under section 501(c)(3) of the Internal Revenue Code, to qualify to receive additional weighting for students enrolled in the class. 
   The bill amends language establishing the district-to-community college sharing program or concurrent enrollment program under the senior year plus program to exempt from the program’s proficiency requirements students who are enrolled in a school district and in a career and technical course at a community college. However, a community college may require a student who applies for enrollment under the program to complete an initial assessment administered by the community college receiving the application to determine the applicant’s readiness to enroll in career and technical coursework, and the community college may deny the enrollment.
   DIVISION IX —— SCHOOL INSTRUCTIONAL TIME TASK FORCE. The bill charges the director of the department of education with appointing a school instructional time task force to conduct a study regarding the minimum requirements of the school day and the school year. 
   The school instructional time task force shall be comprised of at least seven members who shall, at a minimum, examine whether the minimum length of an instructional day should be extended and if so for whom, whether the minimum number of instructional days or hours in a school year should be increased and if so for whom, whether the minimum numbered of instructional days or hours should be rearranged for purposes of summer or other breaks in the school year, whether the minimum school year should be defined by a number of days or by a number of instructional hours, whether there should be a uniform, statewide start date for the school year, and whether resources necessary to extend the minimum instructional day or the minimum school year are justified when compared to competing education priorities. The task force shall submit its findings and recommendations in a report to the state board of education, the governor, and the general assembly by October 15, 2012. 
   DIVISION X —— ASSESSMENTS. The bill relates to assessments for children prekindergarten through grade 11 and requires the department of education to establish and implement a value-added assessment system.
   The bill replaces, in language directing the state board of education to adopt rules requiring that school districts and accredited nonpublic schools submit a comprehensive school improvement plan and report to the department and local communities, references to local education standards and achievement progress with references to statewide standards and assessment measures and eliminates reporting requirements related to locally established student learning goals.
   Further, the rules adopted by the state board incorporating accountability for, and reporting of, student achievement into the standards and accreditation process must provide, by July 1, 2014, for the establishment by the department of an accountability system designed to hold school districts and accredited nonpublic schools accountable for student achievement. The accountability system must, at a minimum, define and measure student achievement, student growth, student achievement gaps, college and career readiness, student well-being, parent satisfaction, school staff working conditions, school fiscal responsibility, and graduation and attendance rates.
   The state board must also adopt, by July 1, 2014, a policy for how school districts shall incorporate end-of-course assessments into their graduation requirements. The director of the department must, by July 1, 2014, develop high school end-of-course assessments for core content standards subject areas, which the school districts must administer as an integral component of such courses.
   In addition, the director may at the director’s discretion, or shall as directed by the state board, convene a working group to develop recommendations for the accountability system or redesign of accreditation procedures; a compliance monitoring process aligned with the accountability system; targeting support for school districts identified as needing assistance; identifying, studying, and commending high-performing districts; and developing takeover strategies for school districts deemed persistently failing to meet educational system or student achievement standards.
   The rules the state board adopts establishing high school graduation requirements shall also require administration of college entrance examinations and career readiness assessments. The bill requires school districts and accredited nonpublic schools to offer to each student enrolled in grade 11 their choice of taking either the college entrance examination to assess English, reading, mathematics, and science or a career readiness assessment to assess reading for information, locating information, and applied mathematics.
   The cost of the examinations and assessments shall be paid by the department of education; and the costs of any additional college entrance examinations taken by a student shall be the responsibility of the student. If funds are available to the department for such purpose, the department shall make a preparation program available to all students in grade 11, and may contract for the necessary assessment services.
   A student whose scores on the college entrance examination indicate a high degree of college readiness shall be counseled by the school district or school to enroll in accelerated courses, with an emphasis on advanced placement classes. A student whose scores on the career readiness assessments indicate that additional assistance is required in reading for information, locating information, or applied mathematics shall be provided intervention strategies for accelerated learning by the school district or school. The bill provides for accommodations for students with disabilities and students requiring special education under Code chapter 256B. The bill requires a student’s scores on the college entrance examinations to be recorded by the school district or school in the student’s official education record.
   The bill eliminates from the core content requirements language relating to locally developed content standards.
   The bill requires the department of education to establish and implement a value-added assessment system not later than January 31, 2013, to provide for multivariate longitudinal analysis of annual student test scores to determine the influence of a school district’s educational program on student academic growth and to guide school district improvement efforts. The department of education is directed to select a value-added assessment system provider, based on criteria set forth in the bill, through a request for proposals process. School districts are required to use the system not later than the 2013-2014 school year, but may request from the district’s area education agency authorization to use an alternative system.
   The bill defines “value-added assessment” to mean a method of measuring gains in student achievement by conducting a statistical analysis of achievement data that reveals academic growth over time for students and groups of students, such as those in a grade level or in a school.
   The system provider must create a mechanism to collect and evaluate data in a manner that reliably aligns the performance of the teacher with the achievement levels and progress of the teacher’s students. School districts must report teacher-to-student alignment data to the system provider as directed by the department.
   The system provider must provide analysis to each school district and the department of education, and must also chart data, using criteria set forth in the bill, for each school district.
   A school district must have complete access to and full utilization of its own value-added assessment reports and charts. Where student outcomes measures are available, for tested subjects and grades, student outcomes measures may be considered by the district to validate observational evaluations. Such measures which are a component of a teacher’s evaluation are not a public record.
   School districts shall use the student academic growth data for defining student and district learning goals and professional development related to student learning goals across the school district.
   The department shall use the data to determine school improvement and technical assistance needs of school districts and to identify school districts achieving exceptional gains. The department is directed to submit an annual progress report regarding the use of student academic growth information in the school improvement processes to the house and senate education committees and must publish the progress report on its internet site.
   The bill also requires each school district to administer a kindergarten readiness assessment prescribed by the department to every resident prekindergarten or four-year-old child whose parent or guardian enrolls the child in the district. The school districts must also administer the Iowa assessments to grade 10 students in the 2012-13 and 2013-14 school years.
   DIVISION XI —— NATIONAL BOARD FOR PROFESSIONAL TEACHING STANDARDS AWARDS. The bill eliminates the end dates for the national board for professional teaching standards certification one-time reimbursement awards and the annual awards. The term of eligibility for the annual award is 10 years or for the years in which the individual maintains a valid certificate, whichever time period is shorter.
   DIVISION XII —— EDUCATOR EMPLOYMENT AND PROFESSIONAL DEVELOPMENT MATTERS. The bill relates to teacher performance, compensation, and career development, professional development for practitioners and state funds for professional development, and to probationary periods and due process for teachers and administrators.
   PROFESSIONAL DEVELOPMENT AND TEACHER EVALUATION. The state board of education is directed to adopt rules providing for the establishment of a statewide plan for the professional development of practitioners employed in Iowa’s school districts. The statewide plan shall be implemented by the area education agencies (AEAs), each of which must submit annually to the department of education a plan for a professional development program for the following fiscal year. The program developed by the AEA must combine the professional development priorities of the state board with the professional development needs of the schools and school districts in the area. The director of the department must approve, amend and approve, or reject each AEA plan. 
   The department is tasked with implementing the statewide plan for professional development established by the state board. A school district may, upon request, receive services under the area professional development plan approved by the director.
   The department of management is directed to annually reduce the distributions from the amounts generated by the total professional development supplement district cost and the total area education agency professional development supplement district cost to each school district and AEA by 10 percent. The school district spending authority is also reduced by 10 percent. An amount equivalent to the amount of the reduction is appropriated to the department for purposes of implementing the statewide plan for the professional development of practitioners.
   REDUCTION IN FORCE. The bill authorizes school boards, which by a majority vote institute a reduction in force, to not renew a teacher’s contract based on teacher evaluations, licensure and endorsements, the needs of the schools and students, and, under certain circumstances, hiring dates.
   The director is authorized to waive requirements relating to the development and review of an individual teacher professional development plan for a school district that utilizes a peer review teacher evaluation system in which consulting teachers, in conjunction with school administrators, make formal evaluations of the school district’s teachers, including but not limited to each teacher’s professional growth and employment status.
   DIVISION XIII —— CHARTER SCHOOL CHANGES. The bill rewrites the majority of Iowa’s charter school legislation. The purpose of the charter school legislation remains the same, as do most of the general operating requirements, but the bill eliminates references to innovation zone schools and broadens the list of entities eligible to submit applications to establish charter schools. However, the bill provides that a charter school or innovation zone school established prior to July 1, 2012, shall continue to be governed by chapter 256F, Code and Code Supplement 2011, until the term of the contract entered into pursuant to section 256F.6, Code 2011, ends.
   ELIGIBLE ENTITIES. Eligible entities under the bill include the following: school districts, area education agencies, community colleges, regents universities, nonprofit private postsecondary institutions, cities and counties with populations of more than 95,000, and nonsectarian, nonreligious, tax-exempt charitable organizations; or consortiums of some of the eligible entities. 
   CONVERSION OF AN EXISTING SCHOOL. The bill continues to provide that the conversion of an existing school district attendance center must be supported by at least 50 percent of the school’s teachers and 50 percent of the parents whose children attend the school.
   The bill states that the legislation shall not be construed as a means to keep open a school that a school board decides to close, but a school board may endorse or authorize the establishing of a charter school to replace the school the board decides to close. Applicants seeking a charter under this circumstance must demonstrate and document that the charter sought is substantially different in purpose and program from the school the board closes.
   DUTIES OF THE DEPARTMENT. The department of education is tasked with developing and implementing an orientation program for operators that covers accountability requirements, reporting requirements, and finance. An operator is an entity whose application to charter a school has been approved by the state board. An operator must successfully complete the orientation program prior to chartering a school. If the operator does not successfully complete the orientation program in the time specified by the department, the state board shall reevaluate the operator’s application and may deny the application.
   The department must also develop and implement or approve orientation programs for members of the boards of directors of charter schools, including but not limited to orientation on the charter school board’s role and responsibilities, employment policies and practices, and financial management. Board members must attend ongoing orientation throughout the member’s term.
   The department shall monitor and evaluate the fiscal, operational, and student performance of the charter school annually. Every fifth year in which a charter school is in operation, and before the state board considers renewing a charter school’s contract, the department must provide to the state board and to the charter school board a formal written review of the annual evaluations conducted.
   OPERATING REQUIREMENTS. New operating requirements include those requiring that charter schools comply with statutes relating to the suspension or expulsion of a student, procedures for handling child abuse, procedures for reporting weapons and drug or alcohol possession or use, and harassment and bullying prohibitions and requirements; comply with statutes and rules relating to student records and school meal programs; submit data for purposes of the department’s comprehensive management information system; and comply with statewide accountability requirements governing high school graduation requirements, the core curriculum, core content standards, and assessments. Suspension or expulsion decisions may be appealed to the state board of education. However, under the bill a charter school no longer must be subject to or comply with Code chapter 279, relating to teacher contracts and discharge of teachers or administrators; or meet the 180-day school year requirement or its equivalent in hours; or provide school bus transportation to nonpublic school and nonresident students.
   PRIMARY FOCUS. The primary focus of a charter school shall be to provide a comprehensive program of instruction for at least one grade or age group from 5-21 years of age.
   CHARTER SCHOOL APPLICATION. An application to operate a charter school must include a business plan that documents the proposed charter school’s mission statement, school purposes, program design, graduation plan, financial plan, governance and management structure, and background and experience of the applicants and the initial board and instructional staff, plus any other information the state board requests; provide a statement of assurances of legal compliance prescribed by the state board; provide a statement of support or nonsupport from the school district in which the charter school would be located, a statement of community support, and how special education and English as a second language programs will be made available and financed; demonstrate the applicant’s ability to implement the procedures and satisfy the criteria for chartering a school; and describe the measures that will be implemented to provide for oversight of the charter school’s academic, financial, and operational performance, and ensure compliance with the terms of any written contract entered into by the charter school board and the state board. An applicant must file a separate application for each school the applicant intends to charter.
   The bill sets forth provisions specifying timelines and requirements for the approval or disapproval of an application. Only the state board is authorized to approve an application. The state board is directed to establish criteria for application approval that at a minimum considers the available capacity and infrastructure identified in the plan, the contracting process specified in the plan, ongoing oversight and evaluation processes relating to administration and staffing, and charter school contract and contract renewal criteria and processes.
   The approval of an application and renewal of a charter by the state board shall not be conditioned upon the bargaining unit status of the employees of the school. Employees of the board of directors of a charter school may, if otherwise eligible, organize under Code chapter 20 and comply with its provisions. The board of directors of a charter school is a public employer, for the purposes of Code chapter 20, upon formation of one or more bargaining units at the school.
   OPERATOR OF CHARTER SCHOOL. An operator who successfully completes the department’s orientation program shall, before entering into a contract or other agreement for professional or other services, goods, or facilities, incorporate as a nonprofit corporation and shall establish an initial board of directors composed of at least five voting members, who are not related parties, until a timely election for members of the ongoing charter school board of directors is held according to the school’s articles and bylaws.
   CHARTER SCHOOL BOARD. Ongoing board members must be elected before the school completes its third year of operation. The articles and bylaws shall include clear policies regarding conflicts of interests and standards of responsibility. Staff members employed at the school and all parents or guardians of children enrolled in the school are the voters eligible to elect charter school board members.
   The charter school board of directors shall be composed of at least one licensed teacher employed at the school, at least one parent or legal guardian of a student enrolled in the charter school who is not an employee of the charter school, and at least one interested community member who is not employed by the charter school and does not have a child enrolled in the school. The majority of board members may be teachers. Contractors providing facilities, goods, or services to a charter school shall not serve on the charter school board except that contracts involving no more than $2,500 do not exclude a contractor from board membership.
   EXPANSION TO ADDITIONAL SITES OR GRADES. The state board may permit the charter school board to expand the operation of the charter school to additional sites or to add additional grades at the school beyond those described in the operator’s approved application only after submitting to the state board a supplemental affidavit that includes a proposed expansion plan that demonstrates need and projected enrollment; documentation that the expansion is warranted, at a minimum, by longitudinal data demonstrating students’ improved academic performance and growth on student assessments; documentation that the charter school is financially sound and the financing it needs to implement the proposed expansion exists; and documentation that the charter school has the governance structure and management capacity to carry out its expansion.
   OPEN MEETINGS AND RECORDS. The charter school board is a government or governmental body for purposes of Iowa’s open meetings and records laws.
   AUDIT REQUIREMENTS. As under current law, the charter school must comply with the same statutory audit requirements as a school district. In addition, the charter school must annually submit an audit report to the state board by December 31 and include a copy of all charter school agreements for corporate management services. If the audit report finds that a material weakness exists in the school’s financial reporting systems, the school shall submit a written report to the state board explaining how the material weakness will be resolved, and the school’s auditor must agree to make available information about the audit to the state board upon request.
   FUNDING. A student enrolled in a charter school shall be counted, for state school foundation aid purposes, in the pupil’s district of residence. The district of residence shall pay to the charter school the state cost per pupil for the previous school year and the combined district cost per pupil, the teacher salary supplement, the professional development supplement, and the early intervention supplement, plus any moneys received for the student as a result of the non-English speaking weighting for the previous school year multiplied by the state cost per pupil for the previous year. Other per pupil moneys may also be payable to a charter school in accordance with the charter school’s approved application.
   ADMISSION REQUIREMENTS. A charter school may limit admission to the following: students within an age group or grade level, students who are either at risk of dropping out or have dropped out, and residents of a specific geographic area in which the school is located when the majority of students served by the school are eligible for free and reduced price meals under federal guidelines. A charter school shall enroll an eligible student who submits a timely application, unless the number of applications exceeds the capacity of a program, class, grade level, or building. In such case, students shall be accepted by lot. A charter school shall give enrollment preference to a sibling of an enrolled student and to a foster child of that student’s parents and may give preference for enrolling children of the school’s staff before accepting other students by lot. A charter school shall not limit admission to students on the basis of intellectual ability, measures of achievement or aptitude, or athletic ability and may not establish any criteria or requirements for admission that are inconsistent with this Code section. The charter school shall not distribute any services or goods of value to students, parents, or guardians as an inducement, term, or condition of enrolling a student in a charter school.
   STAFFING REQUIREMENTS AND QUALIFICATIONS. A charter school shall employ or contract with necessary licensed teachers who hold endorsements to perform the particular service for which they are employed in the school. The school may employ necessary employees who are not required to hold teaching licenses to perform duties other than teaching and may contract for other services.
   LEASE OF SPACE AND FACILITY CONSTRUCTION. A charter school may lease space from a school district or other public organization; a private, nonprofit nonsectarian organization; a private property owner; or a sectarian organization if the leased space is constructed as a school facility.
   A charter school may organize an affiliated nonprofit building corporation to renovate or purchase an existing facility to serve as a school or to construct a new school facility. The bill sets forth requirements for such a corporation.
   RETIREMENT SYSTEMS. Teachers in a charter school are public school teachers and charter schools are employers for the purposes of Iowa public employees’ retirement system.
   CONTRACT RENEWAL OR NONRENEWAL. The state board may or may not renew a charter school contract at the end of the contract term, and may unilaterally terminate a contract during the term of the contract, for any of the following grounds: failure to meet the requirements for student performance contained in the contract, failure to meet generally accepted standards of fiscal management, violations of law, and other good cause shown, including but not limited to the existence of one or more other grounds for revocation as specified in the contract. The bill specifies the procedures for not renewing or terminating a contract. The state board, after providing reasonable notice to the charter school board, and after providing an opportunity for a public hearing, may terminate the existing contract with the charter school board if the charter school has a history of failure to meet student performance requirements consistent with state law, financial mismanagement or failure to meet generally accepted standards of fiscal management, or violations of the law.
   If a contract is not renewed or is terminated, a student who attended the charter school may enroll in the district of residence or may submit an open enrollment application to a nonresident district. The charter school shall transfer the student’s educational records to the student’s new school of enrollment.
   LEGAL AUTHORITY. The board of directors of a charter school may sue and be sued, the charter school shall not levy taxes or issue bonds, and a charter school is a municipality for purposes of tort liability of governmental subdivisions.
   DIVISION XIV —— THIRD GRADE LITERACY. The bill provides for early grade student assessments for reading deficiencies and parental notification of reading deficiencies, and retention for such deficiencies at grade three for students who do not demonstrate an acceptable level of performance on reading standardized or alternative assessments. However, school districts are not required to retain students until the school year beginning July 1, 2016.
   The bill requires the state board of education to adopt guidelines by July 1, 2013, for implementation of the new Code provision established by the bill relating to student progression, retention, and remedial instruction, including but not limited to basic levels of reading proficiency on approved assessments and identification of tools that school districts may use in evaluating and reevaluating any student who may be or who is determined to be deficient in reading, including but not limited to initial assessments and subsequent assessments, alternative assessments, and portfolio reviews. The state board must adopt standards that provide a reasonable expectation that a student’s progress toward reading proficiency is sufficient to master appropriate grade four level reading skills prior to the student’s promotion to grade four.
   The director of the department of education is required to identify the scoring levels on approved grade three reading assessments that will trigger the retention of a student; to develop or identify and approve alternative but equivalent qualifying performance measures for students who are not proficient in reading, such as a demonstration of reading mastery evidenced by portfolios of student work; and to establish, subject to an appropriation of state funds, an Iowa reading research center for the application of current research on literacy.
   School districts must provide intensive reading instruction to students who exhibit a substantial deficiency in reading, based upon locally determined or statewide assessments conducted in kindergarten or grade one, grade two, or grade three, or through teacher observations. The student’s reading proficiency shall be reassessed following the intensive reading instruction. The student shall continue to be provided with intensive reading instruction until the reading deficiency is remedied.
   School districts must notify at least annually, in writing, the parent or guardian of a student who exhibits a substantial deficiency in reading, the district’s determination that the child is deficient in reading, descriptions of the services currently provided to the child and of the proposed supplemental instructional services and supports that the school district will provide to the child to remediate the deficiency; that if the child’s reading deficiency is not remediated by the end of grade three, the child will be retained unless exempt from mandatory retention for good cause; strategies for parents and guardians to use in helping the child succeed in reading proficiency; that the assessment is not the sole determiner of promotion and that additional evaluations, portfolio reviews, performance measures, and assessments are available to assist parents and the school district in knowing when a child is reading at or above grade level and ready for promotion; and the district’s specific criteria and policies for midyear promotion. “Midyear promotion”, under the bill, means promotion of a retained student to the next grade level at any time during the year of retention once the student has demonstrated ability to read at grade level.
   The bill does not preclude the parent or guardian of a student with a reading deficiency from requesting that the student be retained at grade level.
   If a student’s reading deficiency is not remedied by the end of grade three, the student shall be retained in grade three. The school district can exempt students from mandatory retention for good cause, which under the bill includes limited English proficient students; students requiring special education; students who demonstrate an acceptable level of performance on an approved alternative performance measure; students who demonstrate mastery through a student portfolio; and students who have received intensive remediation in reading for two or more years.
   Intensive reading instruction for students promoted under good cause must include an altered instructional day that includes specialized diagnostic information and specific reading strategies for each student, and the school district must assist attendance centers and teachers to implement reading strategies.
   If a student demonstrates acceptable performance through an alternative assessment or student portfolio, the student’s teacher must document the teacher’s recommendation for promotion to the school principal, and if the principal agrees, the principal must make a recommendation to the district superintendent. A parent or guardian may appeal the decision of the superintendent to the school board, but the school board’s decision is final.
   Each school district shall conduct a review of student progress for any student retained who did not meet the criteria for a good cause exemption. The review shall address additional supports and services needed to remediate the identified areas of reading deficiency. The school district shall require a student portfolio to be completed for each such student.
   The intensive supports that a school district must provide free of charge include a minimum of a 90-minute block of scientific-research-based reading instruction and other strategies which may include but are not limited to small group instruction; reduced teacher-student ratios; more frequent progress monitoring; tutoring or mentoring; transition classes containing students in grades three and four; extended school day, week, or year; and summer reading programs.
   At regular intervals, the school district shall provide a report to the parent or guardian apprising the parent or guardian of academic and other progress being made by the student and giving other useful information.
   The school district shall implement a policy for the midyear promotion of a student who can demonstrate that the student is a successful and independent reader, reading at or above grade level, and ready to be promoted to grade four.
   In addition to required reading enhancement and acceleration strategies, school districts must provide parents and guardians of retained students with instructional options such as a plan outlined in a parental contract, including participation in regular parent-guided home reading.
   School districts, using early intervention moneys received from the state, must also establish a reading enhancement and acceleration development initiative designed to prevent the retention of grade three students and to offer intensive accelerated reading instruction to grade three students who fail to meet standards for promotion to grade four and to each kindergarten through grade three student who is assessed as exhibiting a reading deficiency. The bill amends Code section 256D.2A to authorize use of the state early intervention moneys on such initiatives. The initiative shall be provided to all kindergarten through grade three students at risk of retention, and shall measure phonemic awareness, phonics, fluency, vocabulary, and comprehension; be provided during regular school hours in addition to regular reading instruction; and provide a reading curriculum that meets the state board’s guidelines and, at a minimum, assists students in developing the ability to read at grade level; provides skill development in phonemic awareness, phonics, fluency, vocabulary, and comprehension; includes scientifically based and reliable assessment; and provides initial and ongoing analysis of each student’s reading progress; is implemented during regular school hours; and provides a curriculum in core academic subjects to assist the student in maintaining or meeting proficiency levels for the appropriate grade in all academic subjects.
   Each school district shall report to the department the specific intensive reading interventions and supports implemented by the school district, and shall report on the number of students retained under the provisions of the bill.
   Finally, each school district shall provide a retained student who has received intensive instructional services but is still not ready for grade promotion the option of being placed in a transitional instructional setting specifically designed to produce learning gains sufficient to meet grade four performance standards while continuing to remediate the areas of reading deficiency. 
   DIVISION XV —— HOME RULE AUTHORITY. The bill relates to the power and authority of school districts by amending Code chapter 274 to grant school districts “home rule” power and authority. The board of directors of a school district shall operate, control, and supervise all public schools located within its district boundaries and may exercise any broad and implied power related to the operation, control, and supervision of those public schools except as expressly prohibited or prescribed by the Constitution of the State of Iowa or by statute. However, school boards shall not have power to levy any tax unless expressly authorized by the general assembly. The new powers and authority shall not apply to a research and development school or to a laboratory school. Code chapters 257, 274 through 301, and other statutes relating to school boards and to school districts shall be liberally construed to effectuate the purposes specified. 
   DIVISION XVI —— ONLINE LEARNING INTERIM STUDY. The bill requests the legislative council to establish an interim study committee relating to online learning and programming for school districts and related educational issues. The objective of the study shall be to review the appropriate use of online learning by school districts, the appropriate levels and sources of funding for online learning, partnerships between school districts and private providers of online programs, and the potential use of online learning as the exclusive means to provide coursework required under the state’s educational standards. The study shall identify opportunities between interested agencies and entities involved in or potentially involved in online learning activities, including but not limited to K-12 schools, AEAs, institutions of higher learning, the public broadcasting division of the department of education, the department of education, and the Iowa communications network. The committee is directed to submit its findings and recommendations in a report to the general assembly by December 14, 2012.
   DIVISION XVII —— STATE MANDATE. The bill may include a state mandate as defined in Code section 25B.3. The bill requires that the state cost of any state mandate included in the bill be paid by a school district from state school foundation aid received by the school district under Code section 257.16. The specification is deemed to constitute state compliance with any state mandate funding-related requirements of Code section 25B.2.